Notes to Accounts of Gujarat Raffia Industries Ltd.

Mar 31, 2025

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

(8) Contingent Liabilities and commitments:

a) Contingent liabilities:

Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favor of various government authorities for performance of the order Rs. 14.91 lacs (Rs. 24.91 Previous year)

b) Tax demand against the company not acknowledged as payable: Rs. 14.05 lacs refer note no. 12 (Rs. 14.05 lacs previous year).

(9) As per Ind AS - 23 “Borrowing Costs”, the borrowing cost has been charged to profit and Loss statement. None of the borrowing costs have been capitalized during the year.

(10) Licensed and Installed capacity of unmachined and machined production of tarpaulin and woven sacks is 4000 M. T. This being the technical aspect not verified by the auditors as it is certified by the directors.

(11) Confirmation letters have not been obtained from some of the Debtors, Creditors, Loans and Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

(12) During the year 2021-22, Deputy state tax commissioner passed an reassessment order for the F. Y. 2011-12 raising the total demand of Rs. 7.75 lacs including tax of Rs. 2.74 lacs, interest of Rs. 4.45 lacs and penalty of Rs. 0.56 lacs and F. Y. 2012-13 raising the total demand of Rs. 6.30 lacs including tax of Rs. 2.43 lacs and interest of Rs. 3.87 lacs. The company has not accepted the above demand and has filed an appeal with the respective authority. There is no progress in the above cases during the year.

(13) Other Regulatory Information

(a) Title deeds of Immovable Property

The title deeds of all the immovable properties (other than properties where the

Company is lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the company during any of the year reported.

(b) Revaluation of Property, Plant and Equipment and Intangible Assets

The Company has not revalued any of its Property, Plant and Equipment and Intangible Assets during any of the year reported.

(c) Loans or Advances in the nature of loans are granted to promoters, directors,

KMPs and the related parties

The Company has not granted any loans or Advances to promoters, directors, KMPs and the related parties during the year reported during the year. During the year 2023-24 company advanced Rs. 28 lakhs to the company being related party and the same received back in the same year.

(d) Capital- Work- in Progress (CWIP)

The Company does not have any Capital- Work- in Progress as at the end of any of the year reported.

(e) Intangible assets under development

The Company does not have any Intangible assets under development as at the end of any of the year reported.

(f) Details of Benami Property held

The Company does not hold any benami property as defined under the Benami

Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made there under for any of the year reported.

(g) Borrowings obtained on the basis of security of current assets

The Company has been sanctioned working capital limits from banks on the basis of security of current assets and quarterly statements filed by the company with the banks are in agreement with the books of accounts except the following:-

(h) Willful Defaulter

The Company has not been declared willful defaulter by any bank or financial institution or any other lender during any of the year reported.

(i) Relationship with Struck off Companies

The Company does not have any transactions with struck off companies during any of the year reported.

(j) Registration of charges or satisfaction with Registrar of Companies (ROC)

Registration of charges or satisfaction with Registrar of Companies (ROC) not pending during any of the year reported.

(k) Compliance with number of layers of companies

The Company is not holding company of any other company so that compliance with number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 is not applicable for any of the year reported.

(l) Approved scheme of arrangements

The Company has not entered into any scheme of arrangement approved by the Competent Authority in terms of sec dons 230 to 237 of the Companies Act, 2013 during any of the year reported.

(m) Utilization of Borrowed funds and share premium

The Company has not advanced or loaned oi invested funds (either borrowed funds or share premium or kind of funds) to any other persons or entities,, including foreign entities (Intermediaries) with the

understanding (whether recorded in writing or otherwise) 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.

The Company have not received fund from any persons or entities, 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.

(n) Undisclosed Income

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during any of the period/ year in the tax assessments under the Income Tax Act,

1961 and during any of the year reported.

(o) Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in crypto currency or virtual currency during any of the year reported.

(p) Corporate Social Responsibility (CSR)

The Company does not fall under the provisions of Section 135 of the Companies Act, 2013 and accordingly is not required to spend any amount for CSR for any of the year reported.

(14) Statement of Management

a. Balance Sheet, Statement of Profit & Loss and Cash Flow Statement read together with the schedules to the accounts and notes thereon, are drawn up so as to disclose the information required under the Companies Act, 2013 as well as give a true and fair view of the statement of affairs of the company as at the end of the year and results of the company for the year.

b. The current assets, loans and advances are good and recoverable and are approximately of the values, if realized in the ordinarv course of business unless and to the extent stated otherwise in the accounts, provision for all known liabilities is adequate and not in excess of amount reasonably necessary.

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Mar 31, 2024

j) Provisions and Contingencies

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.

If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

k) Cash and Cash Equivalents

Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments.

l) Employee Benefits

Short Term Employee Benefits:

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and they are recognized in the period in which the employee renders the related service. The company recognizes the undiscounted amount of short-term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

Post-Employment Benefits:

Defined Benefit plans:

i) Provident Fund scheme:

Contribution as required by the statute made to the Government provident fund is debited to Profit and Loss statement.

ii) Gratuity scheme:

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing the present value of available refunds and reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability / (asset) are recognized in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability/asset), are recognized in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.

The Company presents the above liability/(asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary.

m) Borrowing Cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized, if any. All other borrowing costs are expensed in the period in which they occur.

n) Segment Reporting

The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IND AS 108, "Operating Segments". The Company operates in one segment only i.e. "HDPE Tarpaulin products". The CODM evaluates performance of the Company based on revenue and operating income from "HDPE Tarpaulin products". Accordingly, segment information has not been separately disclosed.

o) Events after Reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

p) Earnings per share

Basic EPS is calculated in accordance with Ind AS - 33 "Earning per Share" by dividing the profit / loss for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year.

Diluted EPS is calculated in accordance with Ind AS - 33 "Earning per Share" by dividing the profit / loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

q) Recent accounting pronouncements Ind AS 116 Leases:

On March 30, 2019 Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for lessees. Ind As 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits two possible methods of transition:

1. Full retrospective - Retrospectively to each prior period presented applying Ind AS 8 Accounting policies, Changes in accounting estimates and errors

2. Modified retrospective - Retrospectively, with the cumulative effect of initially applying the standard recognized at the date of initial application.

Under modified retrospective approach, the lessee records the lease liability as the present value of the remaining lease payments, discounted at the incremental borrowing rate and the right of use asset either as:

> It''s carrying amount as if the standard had been applied since the commencement date, but discounted at lessee''s incremental borrowing rate at the date of initial application or

> An amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to the lease recognized under Ind AS 17 immediately before the date of initial application.

Effective April 01, 2019, the company has adopted Ind As 116 ''Leases'' using modified retrospective approach. The adoption of the standard did not have any material impact on the financial results.

Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to computer the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

The standard permits two possible method of transition:

1. Full retrospective approach - under this approach, Appendix C will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight

2. Retrospectively, with the cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives

Effective April 01, 2019, the company has adopted Ind AS 12 Appendix C using Retrospectively, with the cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives. The adoption of the standard did not have any material impact on the financial results.

2.4 Key accounting estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognized in the period in which the results are known / materialized.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

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

Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainly at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:

a. Income taxes

The Company''s tax jurisdiction is India, Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions

b. Defined benefit obligation

The costs of providing post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 16 ''Employee benefits'' over the period during which benefit is derived from the employees'' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

c. Fair vale measurement of Financial Instruments

When the fair values of financial assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

d. Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

(8) Contingent Liabilities and commitments:

a) Contingent liabilities:

Outstanding guarantees and counter guarantees to various banks, in respect of the guarantees given by those banks in favor of various government authorities for performance of the order Rs. 24.91 lacs

b) Tax demand against the company not acknowledged as payable:

Rs. 14.05 lacs refer note no. 12.

(9) As per Ind AS - 23 "Borrowing Costs", the borrowing cost has been charged to profit and Loss statement. None of the borrowing costs have been capitalized during the year.

(10) Licensed and Installed capacity of unmachined and machined production of tarpaulin and woven sacks is 4000 M. T. This being the technical aspect not verified by the auditors as it is certified by the directors.

(11) Confirmation letters have not been obtained from some of the Debtors, Creditors, Loans and Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

(12) During the year 2021-22, Deputy state tax commissioner passed an reassessment order for the F. Y. 2011-12 raising the total demand of Rs. 7.75 lacs including tax of Rs. 2.74 lacs, interest of Rs. 4.45 lacs and penalty of Rs. 0.56 lacs and F. Y. 2012-13 raising the total demand of Rs. 6.30 lacs including tax of Rs. 2.43 lacs and interest of Rs. 3.87 lacs. The company has not accepted the above demand and has filed an appeal with the respective authority. There is no progress in the above cases during the year.

(13) Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current Year''s classifications/ disclosure.

For, A. N. Ruparel & Co. For, Gujarat Raffia Industries Limited

Chartered Accountants

(Atul N. Ruparel) Managing Director

Proprietor - M. No.: 46392 (Pradeep Bhutoria - DIN No.: 00284808)

Firm Reg. No.: 113413W

UDIN :24046392BKBVAY3936

Wholetime Director

Place: Ahmedabad (Sushma Bhutoria - DIN No.: 00284819)

Date : 17/05/2024

Chief Financial Officer Company Secretary

(Gopesh Patel) (Rahul Joshi)

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Mar 31, 2015

1. SHARE CAPITAL

A. Terms/rights attached to equity shares :

The company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share The company declares and pays dividends in Indian rupees. The Dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of Interim dividend. The equity shares rank parri passu and carry equal rights with respect to voting and dividend. In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

B. The Equity Share Capital of the Company had been reduced from 10,21,87,000 comprising of 1,02,18,700 shares of Rs.10/- per share fully 99,89,550 equity shares of Rs.5/- each fully paid up. The reduction in capital had been approved under section 100 of the Companies Act 1956 by the High Court Of Gujarat vide its order dated Sept.21,2007. The company then converted its reduced face value of shares from Rs 5 each to Rs 10 each vide special resolution passed in Extra-ordinary General Meeting dated October 15, 2007.

2. Contingent Liabilities and commitment [to the extent not provided for] :

Contingent Liabilities :

a Claims against the Company not acknowledged as debts :

i) Labour Matters 435000 435000

b In respect of guarantees given by Banks and/or counter guarantees given by the Company 250000 2349779

c Other money for which the company is contingent liable :

i) Letters of Credit for Imports 22864000 3664452

3. Derivative Financial Instruments :

A. The Company has not entered into any forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee.

4. Seament Information :

Based on the guiding principal given in Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company's primary business is manufacturing of PE, Tarpaulin, HDPE/PP Woven sacks and fabrics, which has similar risks and returns, accordingly there are no separate reportable segment as far as primary segment is concerned.

The operations of the company are in India and all assets and liabilities are located in India except export debtors and import creditors. The secondary business segment by geographical market is given below.

5. Related Party Transactions :

A. Name of the Related Party and Nature of the Related Party Relationship :

a) Directors and their relatives :

Mr. Pradeep kumar Bhutoria Executive Director

Mrs. Sushma Bhutoria Executive Director

Mr. Abhishek Bhutoria Son of Director

Mr. Alpesh Tripathi Director

Mr. Prakash Ramnani Director (*) Resigned

Mr. Dipen M Shah Director

b) Enterprises significantly influenced by Directors and/or their relatives :

Asian Gases Limited

Bangal Business Limited

Mahanagar Realestate Pvt. Ltd.

Related party relationship is as identified by the Company and relied upon by the Auditors.

6. During the year 2013-2014, company has imported capital goods under EPCG License Scheme and availed custom duty benefit of Rs. 211.32 lacs against which company has export obligation of Rs. Rs. 1785.24 lacs, which is to be completed within six years of import. The company has fulfilled its obligation during the year.

7. The Company has worked out deferred tax liabilities/assets at March 31, 2015. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence and in absence of virtual certainty as to its realization.

8. Confirmation letters have not been obtained from some of the Debtors Creditors, and Loans & Advances.

Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

9. Previous period's figures have been regrouped/ reclassified wherever necessary to correspond with the current period's classifications/ disclosure.

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Mar 31, 2014

1. A Terms/rights attached to equity shares :

The company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share The company declares and pays dividends in Indian rupees. The Dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of Interim dividend. The equity shares rank parri passu and carry equal rights with respect to voting and dividend. In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

B The Equity Share Capital of the Company had been reduced from 10,21,87,000 comprising of 1,02,18,700 shares of Rs.10/- per share fully 99,89,550 equity shares of Rs.5/- each fully paid up. The reduction in capital had been approved under section 100 of the Companies Act 1956 by the High Court Of Gujarat vide its order dated Sept.21,2007. The company then converted its reduced face value of shares from Rs 5 each to Rs 10 each vide special resolution passed in Extra-ordinary General Meeting dated October 15, 2007.

2. A Securities and Terms of Repayment for Secured Long Term Borrowings :

a Finance Lease obligations is secured by hypothecation of assets taken on lease.

b Term Loan from Bank

* Secured against entire stock of Raw Material (imported / indigenous ), semi-finished goods, Finished Goods, Book Debts and collateral Security of Factory Land and Building and Plant and Machinery.

* Secured loan amounting to Rs. 312635/- ( P.Y. Rs. 255584/-) is secured by hypothecation of vehicle.

B Terms of Repayment for Secured Long Term Borrowings:

a Financce lease obligations are repayable in equal monthly installments along with interest for the period.

c There is no continious default in repayment of Loan and interest their on as on March 31st, 2014 for any loans under this head.

NOTE : 3 - CONTINGENT LIABILITIES AND COMMITMENT [TO THE EXTENT NOT PROVIDED FOR] :

Contingent Liabilities :

a Claims against the Company not acknowledged as debts

i) Labour Matters 435000 235000

b In respect of guarantees given by Banks and/or counter guarantees given by the Company 2349779 160000

c Other money for which the company is contingent liable:

i) Letters of Credit for Imports 3664452 8328104

NOTE : 4 - SEGMENT INFORMATION :

Based on the guiding principal given in Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company''s primary business is manufacturing of PE, Tarpaulin, HDPE/PP Woven sacks and fabrics, which has similar risks and returns, accordingly there are no separate reportable segment as far as primary segment is concerned.

The operations of the company are in India and all assets and liabilities are located in India except export debtors and import creditors. The secondary business segment by geographical market is given below.

Note : 5 During the year company has imported capiotal goods under EPCG License Scheme and availed custom duty benefit of Rs. 211.32 lacs against which company has export obligation of Rs. Rs. 1785.24 lacs, which is to be completed within six years of import. Till the year ended 31.03.2014 company has exported goods amounting to Rs. 502.28 Lacs. If company fails to do meet the export obligation then it will be liable to pay custom duty saved alongwith interest and penalty thereon.

Note : 6 :- The Company has worked out deferred tax liabilities/assets as at March 31,2014. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence and in absence of virtual certainty as to its realization.

Note : 7 :- Confirmation letters have not been obtained from some of the Debtors, Creditors, and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

Note : 8 :- Previous period''s figures have been regrouped/ reclassified wherever necessary to correspond with the current period''s classifications/ disclosure.

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Mar 31, 2013

NOTE : 1 - DERIVATIVE FINANCIAL INSTRUMENTS :

A The Company has not entered into any forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee.

NOTE: 2 -SEGMENT INFORMATION:

Based on the guiding principal given in Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company''s primary business is manufacturing of PE, Tarpaulin, HDPE/PP Woven sacks and fabrics, which has similar risks and returns, accordingly there are no separate reportable segment as far as primary segment is concerned.

The operations of the company are in India and all assets and liabilities are located in India except export debtors and import creditors. The secondary business segment by geographical market is given below.

NOTE: 3 -RELATED PARTY TRANSACTIONS:

A Name of the Related Party and Nature of the Related Party Relationship:

a) Directors and their relatives:

Mr. Pradeepkumar Bhutoria Executive Director

Mrs. Sushma Bhutoria Executive Director

Mr. Abhishek Bhutoria Son of Director

Mr. Alpesh Tripathi Director

Mr. Prakash ramnani Director

Mr. Dipen M Shah Director

b) Enterprises significantly influenced by Directors and/or their relatives:

Asian Gases Limited Bangal Business Limited Mahanagar Realestate Pvt. Ltd.

Related party relationship is as identified by the Company and relied upon by the Auditors.

NOTE: 4

The Company has worked out deferred tax liabilities/assets as at March 31, 2013. In view of unabsorbed depreciation and business losses under tax laws, net result of computation is net deferred tax assets, which are not recognised as a matter of prudence and in absence of virtual certainty as to its realization.

NOTE: 5

Confirmation letters have not been obtained from some of the Debtors, Creditors, and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

NOTE: 6

Previous period''s figures have been regrouped/ reclassified wherever necessary to correspond with the current period''s classifications/ disclosure.

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Mar 31, 2012

A Terms/rights attached to equity shares:

The company has only one class of equity shares having par value of Rs. 10/- per share.

Each holder of equity shares is entitled to one vote per share The company declares and pays dividends in Indian rupees. The Dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of Interim dividend. The equity shares rank parri passu and carry equal rights with respect to voting and dividend. In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remained after distribution of all preferential amounts.

As per records of the company, Including iits register of shareholers/members and declaration received from the shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownershipsof shares.

B The Equity Share Capital of the Company had been reduced from 10,21,87,000 comprising of 1,02,18,700 shares of Rs.10/- per share fully 99,89,550 equity shares of Rs.5/- each fully paid up. The reduction in capital had been approved under section 100 of the Companies Act, 1961 by the High Court Of Gujarat vide its order dated Sept.21,2007. The company then converted its reduced face value of shares from Rs 5 each to Rs 10 each vide special resolution passed in Extra-ordinary General Meeting dated October 15, 2007.

A Securities and Terms of Repayment for Secured Long Term Borrowings:

a Finance Lease obligations is secured by hypothecation of assets taken on lease.

B Terms of Repayment for Unsecured Long Term Borrowings:

a Financce lease obligations are repayable in equal monthly installments along with interest for the period.

C There is no continious default in repayment of Loan and interest their on as on March 31st, 2012 for any Loans under this head.

NOTE: 1-CONTINGENT LIABILITIES AND COMMITMENT [TOTHE EXTENT NOT PROVIDED FOR]:

A Contingent Liabilities:

a Claims against the Company not acknowledged as debts

i) Labour Matters 1200000 1200000

b In respect of guarantees given by Banks and/or counter

guarantees given by the Company 0 150000

c Other money for which the company is contingent liable:

i) Letters of Credit for Imports 0 1348083

NOTE: 2-SEGMENT INFORMATION:

Based on the guiding principal given in Accounting Standard - 17 on Segment Reporting issued by the Institute of Chartered Accountants of India, the Company's primary business is manufacturing of PE, Tarpaulin, HDPE/PP Woven sacks and fabrics, which has similar risks and returns, accordingly there are no separate reportable segment as far as primary segment is concerned.

The operations of the company are in India and all assets and liabilities are located in India except export debtors and import creditors. The secondary business segment by geographical market is given below.

NOTE: 3

Confirmation letters have not been obtained from some of the Debtors, Creditors, and Loans & Advances. Hence the, balances of these accounts are subject to confirmation, reconciliation and consequent adjustments, if any.

NOTE: 4

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous period's figures have been regrouped/ reclassified wherever necessary to correspond with the current period's classifications/ disclosure.

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Mar 31, 2010

1. Contingent Liabilities

As on 31st March As on 31st December 2010 2008

1. Bank Guarantee 5,00,000 11,77,000

2. Letters of Credit Outstanding 12,51,280 -

3. Claims against the company not acknowledged as debts:

Labour Matters 5,00,000 -

ESIC 7,00,000 -

2. The previous period's figures have been regrouped wherever necessary.

3. The company has not received information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Here disclosures, if any, relating to amounts unpaid as at the year-end together with interest paid/payable as required under the said Act have not been made.

4. As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below.

Defined Benefit Plan:

The employees' gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of 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.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the company's policy for plan assets management.

No provision for Leave encashment benefits has been made during the year.

5. Derivative Instruments:

a) The Company has not entered into any forward contracts to offset foreign currency risks arising from the amounts denominated in currencies other than the Indian Rupee.

b) Foreign Currency exposure at the year end not hedged by derivative instruments.

6. Segment Information:

Based on the guiding principle given in Accounting Standard-17 on segment Reporting issued by the Institute of Chartered Accountants of India. the Company's primary business is manufacturing of P.E.Tarpaulin. H.D.P.E/P.P. Woven Sacks. Fabrics which has similar risks and returns accordingly there are no separate reportable segment as far as primary segment is concerned.

7. As the Company does not anticipate taxable profit in near future, so to comply with the Accounting Standard-22 issued by the Institute of Chartered Accountants of India. The Provision for deferred tax liabilities has not been made during the year.