Notes to Accounts of Hindustan Adhesives Ltd.

Mar 31, 2024

(ii) Rights, preferences and restriction attached to shares

The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders .

a) First pari-passu charge on entire fixed assets of the company situated at Mundra, Kutch, Gujrat along with Indian Bank -for Term Loan.

b) First pari-passu charge on factory Land and Building situated at Survey No. 380/PAIKI/1 Gandhi Dham Road, Village, Bhadreshwar, Tehsil, Mundra, Kutch, Gujrat along with Indian Bank - for Term Loan.

c) First charge over Factory Land and Building at Khasra No.9/0-17-0 and Khasra no.10/0-16-0,11/10-17-0,12/0-19-0,8/0-4-0,14/1 M/2-9-10, situated at village Acheja, Tehsil Dadri Dist. Ghaziabad, Gautam Budh Nagar(Uttar Pradesh) admeasuring total area 3 bigha,13 biswa, 6 sahi, 2/3 Biswansi.

d) First Charge on entire fixed assets Located at Dadri, district Ghaziabad Plant.

e) Second pari pasu charge entire current assets of the Company, (both present and future),along with other term landers Indian Bank.

f) Personal guarantee of Mr. Madhusudan Bagla, the Managing Director of the Company.

g) The Term Loan is repayable in 24 Quarterly instalments, interest is payable on monthly basis.

h) The COVID Emergency Credit Line (CCECL) and The Emergency Credit Line (GECL) Loans are completely been paid off during the Year.

a) First pari-passu charge on entire movable and immovable fixed assets of the company (including Land and Building) of the manufacturing unit at Survey No. 380/PAIKA /1 Gandhi Dham Road, Village, Bhadreshwar, Tehsil, Mundra, Kutch, Gujrat along with State Bank of India.

b) First charge on the entire movable fixed assets, (including Land admeasuring 1800 Sqm and Building and Structure thereon and all Plant and Machinery of the unit at Plot No. 15, KIE Industrial Estate, Village Mundyaki, Pargana Mangalore, Tehsil, Roorkee, Dist. Haridwar, both present & future ton exclusive basis.

c) Second pari pasu charge entire movable current assets of the company, both present and future, to be shared with State Bank of India i.e. other term lender.

d) Second Pari passu charge along with Working Capital Lenders on the entire moveable and immovable fixed assets of the Unit (including Land admeasuring 3 Bigha, 13 Biswa and 6 sahi,2/3 bushwansi, and building and structure thereon and all plant and machinery) but excluding the land area on 0.0253 Hectares covered under separate sale dead on which negative lien is stipulated) situated at situated at village Acheja, Tehsil Dadri Dist. Ghaziabad, Gautam Budh Nagar(Uttar Pradesh) along with State Bank of India.

e) Personal guarantee of the Managing Director Mr. Madhusudan Bagla Managing Director of the Company.

f) The Term Loan of is repayable in 24 Quarterly instalments, starting from June 2021, interest is payable monthly.

g) The COVID Emergency Credit Line (CCECL) and The Emergency Credit Line (GECL) Loans are completely been paid off during the Year.

C Loan from ICICI Bank, Indian Bank & State Bank of India are secured by way of hypothecation of the vehicle financed by them.

D Term Loans from IDBI Bank is secured by way of :

a) Extension of Charges on Second pari-pasu basis on primary and collateral securities charged for other facilities.

b) The Emergency Credit Line (CCECL) Term Loan of Rs. 1.61 Crores sanctioned in 2020 is repayable in 36 Monthly instalments, starting from March, 2022, interest is payable on monthly basis full paid by the company.

c) The Emergency Credit Line (CCECL) Term Loan of Rs. 1.53 Crores sanctioned in May 2022 is repayable in 48 Monthly instalments, starting from April,2024, interest is payable on monthly basis full paid by the company

A Working Capital Loans from State bank of India, Indian bank, IDBI bank and HDFC Bank is secured by way of First pari passu charge on the entire current assets of all three units of the company both present & future.

B Working Capital Loans from State bank of India, Indian bank, IDBI bank and HDFC Bank is secured by way of second pari passu charge on the entire movable and immovable fixed assets both present & future of the company''s unit located Unit located at Roorkee (Haridwar), Dadri (Uttar Pradesh) and Kutch (Gujarat), including land and building except land admeasuring 0.253 hectares [art of the existing factory land.

34 Government Grants

The Company has applied the requirements in Ind AS 109, Financial Instruments, and Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance.

35 Contingent liabilities not provided for in respect of:

(a) (i) Bank Guarantees given by the Company Rs. 49.73 Lacs (Previous year Rs.59.73 Lacs)

(ii) Corporate guarantee given to HDFC Bank on behalf of its wholly owned on subsidiary i.e. Bagla Technopack Pvt. Ltd.

(b) Foreign letter of credit opened with IDBI Bank, Indian Bank State Bank of India & HDFC Bank for import of Raw material etc. worth Rs. 126.73 Lacs (Previous year Rs. 989.91 Lacs) and domestic letter of credit for procurement of raw material from domestic supplier Rs. Nil (Previous year Rs. NIL)

(c) Central Sales tax payable for Assessment year 2013-14 in respect of its Roorkee unit, Nil (Previous year 6.65 Lacs). The Appeal against the same has been settled in favour of the Company during the year.

36 Estimated Amount of capital commitment for contracts remaining to be executed Rs 3.58 Crore (Previous year 2.21 Crore)against

which advances are given Rs 1.50 Crore (previous year Rs.0.84 Crore ).

37 Disclosures of the Additional Regulatory Information to the extent applicable to the company are made in compliance

with the amendments made in Schedule III to the Companies Act 2013 vide Notification No. GSR 207(E) dated 24th

March, 2021, are given as under:

(i) The Title Deeds of the Property owned by the Company are held by the Company in its own Name, and the documents thereof are pledged with the State Bank of India.

(ii) The Company does not hold any property as Investment as any time during the year

(iii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets)

(iv) The Company does not have any intangible assets at any time during the year

(v) The company has not granted Loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) at any time during the year, except Nil (PY. Rs. 1 crore) shown in Note 37(xxvi) below which was recovered in due course.

(vi) The Company does not own any Capital Work in Progress (CWIP) at the close of the financial year.

(vii) The Company does not have any Intangible assets under development at any time during the year

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

(ix) The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from State Bank of India as lead banker in the consortium where IDBI , HDFC and Indian Bank are members. on the basis of returns or statements filed by the Company with banks are in agreement with the books of account of the Company except for statements filed for month ended 30 June 2023, 30 September, 2023 ,31 December 2023 and 31 March 2024 where differences were noted between the amount as per books of account for respective months and amount as reported in the quarterly statements.

The difference were in case of Debtors amounting to Rs (-)12 Lakhs (amount reported - Rs 2,289 Lakhs Vs amount per books of account - Rs 2,277), Rs (-)132 Lakhs (amount reported - Rs 2,642 Lakhs Vs amount per books of account - Rs 2,511 Lakhs), Rs 159 Lakhs (amount reported - Rs 2,650 Lakhs Vs amount as per books of account - Rs 2,809 Lakhs) and Rs 3 Lakhs (amount reported - Rs 2,876 Lakhs Vs amount as per books of account - Rs 2,878 Lakhs) for quarter ended 30 June 2023, 30 September 2023, 31st December 2023 and 31st March 2024.

Further, Inventory had a difference of Rs 8 Lakhs (amount reported to Bank-Rs 4,099 Lakhs Vs amount per books of account- Rs 4,108), Rs 47 Lakhs (amount reported to Bank - Rs 4,280 Lakhs Vs amount per books of account - Rs 4,327 Lakhs), Rs (-) 118 Lakhs (amount reported to Bank - Rs 4,018 Lakhs Vs amount per books of account - Rs 3,900 Lakhs) and Rs 0 Lakhs (amount reported to Bank - Rs3,293 Lakhs Vs amount per books of account - Rs 3,293 Lakhs ( Excluding “Raw Material in Transit” shown in Note no 9.)) for quarter ended 30 June 2023, 30 September 2023, 31st December 2023 and 31st March 2024.

Further, Creditors had a difference of Rs 14 Lakhs (amount reported to Rs. 1,471 Lakhs Vs amount per books of account- Rs 1,485), Rs (-) 32 Lakhs ( amount reported - Rs 2,225 Lakhs Vs amount per books of account - Rs 2,193 Lakhs) Rs. (-)202 (amount reported - Rs 1904Lakhs Vs amount per books of account - Rs 1701 Lakhs), Rs.6 Lakhs (amount reported - Rs 1113 Lakhs Vs amount per books of account - Rs 1119 Lakhs) ( Excluding “Raw Material in Transit” creditors shown in Note no 9.) ( Lakhs or quarter ended 30 June 2023 and 30th September 2023 and 31st December 2023 and 31st March 2024.

Further that, Turnover had a difference of Rs 298 Lakhs (amount reported to Bank-Rs 8511 Lakhs Vs amount per books of account- Rs 8213 Lakhs, Rs.452 Lakhs (amount reported to Bank - Rs 8645 Lakhs Vs amount per books of account - Rs 8193 Lakhs), Rs 371 Lakhs (amount reported to Bank- Rs 7487 Lakhs Vs amount per books of account - Rs 7,116 Lakhs) and Rs 356 Lakhs (amount reported to Bank - Rs 7551 Lakhs Vs amount per books of account - Rs 7195 Lakhs) for quarter ended 30 June 2023, 30 September 2023, 31st December 2023 and 31st March 2024 the difference is due to Inter-unit sales not excluded while submitted it to the Bank.

The overall impact on Working capital based on figures as per books of account as compared to the reported figures is, a Decrease in working capital by Rs. (-) 47 lakhs and Rs. (-)8 Lakhs as of 30th June and 30th September 2023 and an increase in working capital by Rs 54 Lakhs and Rs. 345 Lakhs and 31st December and 31 st March 2024 and respectively.

(x) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

(xi) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(xii) There are no charges or satisfaction of Charges yet to be registered with Registrar of Companies beyond the statutory period.

(xiii) The Company have a subsidiary , hence the provision with regard to compliance with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 are applicable to the company.

(xiv) During the year under report no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(xv) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(is), 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;

(xvi) The company has not received any fund from any person(s) or entity(is), 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.

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

(xviii) The Company does not have any transaction which are not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(xix) The Company has not received any Government Grant or Subsidy during the year.

38 Balance with Indian Bank- Ahmadabad Rs.15,150 having no transactions during the year is subject to Confirmation.

39 Accrued benefits of duty free imports available to the company in form of transferable import licenses for completed export obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same has no impact on financial statements of the company.

40 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances including amount recoverable from Income Tax, Goods and Service tax , Central Excise, Service Tax, VAT and deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

41 The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company has received Capital Subsidy amounting to Rs.30.00 lacs during 2014-15 under the said scheme credited to capital reserves.

(B) Defined Benefit Plan (unfunded)

(a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

48 Figures of previous year have been re-grouped/re-arranged/re-cast wherever considered necessary.

49 Figures in brackets represent previous year figures.

50 The above audited results for the quarter and year ended 31st March, 2024 has been reviewed by the Audit committee and approved by the Board of Directors at their respective meetings held on 30 May, 2024.

---

Mar 31, 2023

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

2 Trade receivables are generally non interest bearing

3 Trade receivable includes due from related parties Rs 20,69,502/- ( Previous year Rs.2,34,12,702/-)

4 Ageing required as per Schedule III, to the companies act are furnished in note No. 37(xxii)

(ii) Rights, preferences and restriction attached to shares

The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held. The dividend , if any , proposed by the Board of Directors is subject to the approval of the shareholders.

A Term Loans from State Bank of India is secured by way of :

a) First pari-passu charge on entire movable and immovable fixed assets of the company (including Land and Building) of the manufacturing unit at Kutch , Gujrat along with Indian Bank - for Term Loan

b) First charge over Factory Land and Building bearing survey no. Bigha, Biswa and sahi bushwansi, in Khasra No.9/0-17-0 and Khasra no.10/0-16-0,11/10-17-0,12/0-19-0,8/0-4-0,14/1 M/2-9-10, situated at village Acheja , Tehsil Dadri Dist. Ghaziabad, Gautam Budh Nagar(Uttar Pradesh) admeasuring total area 3 bigha,13 biswa,6 sahi, along with other term landers Indian Bank.

c) Second pari pasu charge entire movable fixed assets, both present and future, of the company''s unit at Roorkee, Haridwar, both present & future to be shared with working capital lenders Indian Bank, IDBI Bank and HDFC Bank .

d) Second pari-passu charge on the entire movable and immovable fixed assets of the company, including land and construction thereon, both present and future, of the company''s plant located at Dadri, district Ghaziabad (excluding land admeasuring 0.0253 hectares part of the existing factory land) to be shared with working capital lenders Indian Bank, IDBI Bank and HDFC Bank.

e) Second pari-passu charge on entire movable and immovable fixed assets of the company, including land and building construction thereon, both present and future, of the company''s plant located at Bhadreshwar, Kutch, near Mundra Port, Gujarat with working capital lenders Indian Bank, IDBI Bank and HDFC Bank .Second pari-passu charge on entire movable and immovable fixed assets of the company, including land and building construction thereon, both present and future, of the company''s plant located at Bhadreshwar, Kutch, near Mundra Port, Gujarat to be sharedwith IDBI bank .

f) Personal guarantee of Mr. Madhusudan Bagla , the Managing Director of the Company and sh Lalit Kumar Bagla and Ex Director of the Company.

g) The Term Loan is repayable in 24 Quarterly instalments, interest is payable on monthly basis

h) The COVID Emergency Credit Line (CCECL) Term Loan of Rs. 3.74 Crores sanctioned in 2020 of is repayable in 36 Monthly instalments, starting from Feb-2022, interest is payable on monthly basis.

i) The Emergency Credit Line (GECL) Term Loan of Rs. 5.00 crores sanctioned in 2022 of is repayable in48 Monthly instalments, starting from Jan 2024, interest is payable on monthly basis.

B Term Loans from Indian Bank is secured by way of :

a) First pari-passu charge on entire movable and immovable fixed assets of the company (including Land and Building) of the manufacturing unit at Kutch , Gujrat along with State Bank of India

b) First charge over Factory Land and Building bearing survey no. Bigha, Biswa and sahi bushwansi, in Khasra No.9/0-17-0 and Khasra no.10/0-16-0,11/10-17-0,12/0-19-0,8/0-4-0,14/1 M/2-9-10, situated at village Acheja , Tehsil Dadri Dist. Ghaziabad, Gautam Budh Nagar(Uttar Pradesh) admeasuring total area 3 bigha,13 biswa,6 sahi, along with State Bank of India

c) Second pari pasu charge entire movable fixed assets, both present and future, of the company''s unit at Roorkee, Haridwar, both present & future to be shared with working capital lenders State Bank of India , IDBI Bank and HDFC Bank .

d) Personal guarantee of the Managing Director Mr. Madhusudan Bagla ,and Sh Lalit Kumar Bagla an Ex Director of the Company.

e) The Term Loan of is repayable in 24 Quarterly instalments, starting from June 2021, interest is payable monthly.

f) The COVID Emergency Credit Line (CCECL) Term Loan of Rs. 1.30 Crores sanctioned in 2020 is repayable in 30 Monthly instalments, starting from Nov-2020, interest is payable on monthly basis, Pre-Closed During the year.

i) The Emergency Credit Line (GECL) Term Loan of Rs. 3.30 Crores sanctioned in 2020 is repayable in 31 Monthly instalments, starting from March-2022, interest is payable on monthly basis.

C Loan from ICICI Bank YES Bank and Indian Bank are secured by way of hypothecation of the vehicle financed by them.

D Term Loans from IDBI Bank is secured by way of :

a) Extension of Charges on Second pari-pasu basis on primary and collateral securities charged for other facilities.

b) The Emergency Credit Line (CCECL) Term Loan of Rs. 1.61 Crores sanctioned in 2020 is repayable in 36 Monthly instalments, starting from March ,2022, interest is payable on monthly basis.

c) The Emergency Credit Line (CCECL) Term Loan of Rs. 1.53 Crores sanctioned in May 2022 is repayable in 48 Monthly instalments, starting from April,2024, interest is payable on monthly basis.

A Working Capital Loans from State bank of India , Indian bank , IDBI bank and HDFC Bank is secured by way of First pari passu

charge on the entire current assets of all three units of the company both present & future.

B Working Capital Loans from State bank of India , Indian bank, IDBI bank and HDFC Bank is secured by way of second pari

passu charge on the entire movable and immovable fixed assets both present & future of the company''s unit located Unit located at Roorkee (Haridwar), Dadri (Uttar Pradesh) and Kutch (Gujarat), including land and building except land admeasuring 0.253 hectares [art of the existing factory land.

34 Government Grants

The Company has applied the requirements in Ind AS 109, Financial Instruments, and Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance.

35 Contingent liabilities not provided for in respect of:

(a) Bank Guarantees given by the Company Rs. 60.63 Lacs (Previous year Rs.59.73 Lacs)

(b) Foreign letter of credit opened with IDBI Bank, Indian Bank & HDFC Bank for import of Raw material etc. worth Rs. 237.57

Lacs (Previous year Rs. 989.91 Lacs) and domestic letter of credit for procurement of raw material from domestic supplier Rs. Nil (Previous year Rs. NIL)

(c) Central Sales tax payable for Assessment year 2013-14 in respect of its Roorkee unit, for which an appeal has been settle and paid full amount paid by company (Previous year 6.65 Lacs) but Department has file second appeal against the order

(d) Income Tax Penalty Demand pending in Appeals before Commissioner of Income Tax Appeals for Assessment year 2018-19, Rs. 15,72 Lacs

(e) Income Tax Demand pending for rectification before Assistant Commissioner of Income Tax (jurisdictional) for Assessment year 2014-15, Rs. 5.23 Lacs. the amount has already been paid /adjusted but due to some clerical oversight the demand is appearing on the Income tax portal, and the company has applied for rectification thereof.

(f) Income Tax Demand pending for rectification before Assistant Commissioner of Income Tax (jurisdictional) for Assessment year 2017-18, Rs.40,44 Lacs. the amount has already been settled, paid /adjusted under VIVad Se Vishwas Scheme 2020 but due to some clerical oversight the demand is appearing on the Income tax portal, and the company has applied for rectification thereof.

36 Estimated Amount of capital commitment for contracts remaining to be executed Rs 2.21 Crores (Previous year 4.56 Crores)

against which advances are given Rs. 0.86 Crores (previous year Rs.3.07 Crores).

37 Disclosures of the Additional Regulatory Information to the extent applicable to the company are made in compliance

with the amendments made in Schedule III to the Companies Act 2013 vide Notification No. GSR 207(E) dated 24th

March, 2021, are given as under:

i) The Title Deeds of the Property owned by the Company are held by the Company in its own Name, and the documents thereof are pledged with the State Bank of India.

ii) The Compny does not hold any property as Investment as any time during the year

iii) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets)

iv) The Company does not have any intangible assets at any time during the year

v) The company has not granted Loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) at any time during the year, except Rs. 1,00,00,000 shown in Note 37 (XXIV)

vi) The Company own Capital Work in Progress (CWIP) at the close of the financial year shown in Note no. 5.

vii) The Company does not have any Intangible assets under development at any time during the year

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

ix) The company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from State Bank of India as lead banker in the consortium where IDBI, HDFC and Indian Bank are members. On the basis of returns or statements filed by the Company with banks are in agreement with the books of account of the Company except for statements filed for month ended 30 June 2022, 30 September, 2022 ,31 December 2022 and 31 March 2023 where differences were noted between the amount as per books of account for respective months and amount as reported in the quarterly statements

The difference were in case of Debtors amounting to Rs 197 Lakhs (amount reported to Bank - Rs 4,111 Lakhs Vs amount per books of account - Rs 4,308), Rs 15 Lakhs (amount reported to Bank - Rs 2,552 Lakhs Vs amount per books of account - Rs 2,567 Lakhs), Rs 31 Lakhs (amount reported to Bank - Rs 2,422 Lakhs Vs amount as per books of account - Rs 2,391 Lakhs) and Rs 118 Lakhs (amount reported to Bank - Rs 1,950 Lakhs Vs amount as per books of account - Rs 1,832 Lakhs) for quarter ended 30 June 2022, 30 September 2022, 31 st December 2022 and 31 st March 2023.

Further, Inventory had a difference of Rs 76 Lakhs (amount reported to Bank-Rs 4,982 Lakhs Vs amount per books of account- Rs 4,906), Rs 63 Lakhs (amount reported to Bank - Rs 4,792l Lakhs Vs amount per books of account - Rs 4,855 Lakhs), Rs 56 Lakhs (amount reported to Bank - Rs 4,082 Lakhs Vs amount per books of account - Rs 4,138 Lakhs) and Rs 31 Lakhs (amount reported to Bank - Rs4,588 Lakhs Vs amount per books of account - Rs 4,619 Lakhs ( Excluding “Raw Material in Transit” shown in Note no9.)) for quarter ended 30 June 2022, 30 September 2022, 31st December 2022 and 31st March 2023.

Further, Creditors had a difference of Rs 88 Lakhs (amount reported-Rs 2,073 Lakhs Vs amount per books of account- Rs 1,985), Rs 45 Lakhs (amount reported - Rs 554 Lakhs Vs amount per books of account - Rs 509 Lakhs) for quarter ended 30 June 2022 and 31st December 2022 and No difference in Quarter ended 30 September 2022 and and 31st March 2023.

Further that, Turnover had a difference of Rs 789 Lakhs (amount reported to Bank-Rs 12,593 Lakhs Vs amount per books of account- Rs 11,804), Rs 538 Lakhs (amount reported to Bank - Rs 7,869 Lakhs Vs amount per books of account - Rs 7,331 Lakhs), Rs 42 Lakhs (amount reported to Bank- Rs 7,557 Lakhs Vs amount per books of account - Rs 7,599 Lakhs) and Rs 990 Lakhs (amount reported to Bank - Rs 6,410 Lakhs Vs amount per books of account - Rs 5,420 Lakhs) for quarter ended 30 June 2022, 30 September 2022, 31st December 2022 and 31st March 2023 the differance is due to Inter-unit sales not excluded while submitted it to the Bank.

The overall impact on Working capital based on figures as per books of account as compared to the reported figures are, increase in working capital by Rs. 210 lakhs and Rs. 78 Lakhs and Rs. 70 Lakhs as on 30th June and 30th September and 31st Dececmber respectively. Whereas the working capital got reduced by Rs. 88 Lakhs as on 31st March 2023.

x) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

xi) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xii) There are no charges or satisfaction of Charges yet to be registered with Registrar of Companies beyond the statutory period.

xiii) The Company does not have any subsidiary, hence the provision with regard to compliance with the number of layers for its holding in downstream companies prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 are not applicable to the company.

xiv) During the year under report no Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

xv) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(is), 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;

xvi) The company has not received any fund from any person(s) or entity(is), 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.

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

xviii) The Company does not have any transaction which are not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

xix) The Company has not received any Government Grant or Subsidy during the year.

xx) Details Corporate Social Responsibility (CSR)

a) amount required to be spent by the company during the year, 40.30 Lakhs

b) amount of expenditure incurred, 40.30 Lakhs

c) shortfall at the end of the year Nil

d) total of previous years shortfall, Nil

e) reason for shortfall Nil

f) the company has undertaken Education, skilling, health, environmental sustainability, Meditation Centre

COVID-19 relief activities under its CSR activities and Education

g) the entire amount pf CSR has been spent through M/s Bagla Foundation - a related party.

38 Insurance Claim receivable includes following claims which are not yet settled and any variation therein will be accounted for in the year of actual realisation:

(i) Claim with The Universal Sompo General Insurance Company Limited for loss of finished goods and packing material and scrap under fire broke out on 28/04/2020 at 1st floor of the factory building at Dadri plant has been settled in current year at Rs.17.75 Lacs (Previous Year Rs.33.91 Lacs. ), The claim has been increased by the amount of GST Input Reversal of Rs Nil ( Prevous Year Rs. 2.50 Lacs ) during the year.

(ii) Claim with The Universal Sompo General Insurance Company Limited for loss of Raw Material,Finished Goods, packing material and Work in process under fire broke out on 30/04/2020 at Ground floor of the factory building at Dadri plant has been settled in current year at Rs. 86.49 Lacs (Previous Year Rs 129.79 Lacs). The claim has been increased by the amount of GST Input Reversal of Rs. ..NIL (Previous Year Rs 17.55 Lacs )during the year.

39 Balance with Indian Bank- Ahmadabad Rs.15,150 having no transactions during the year is subject to Confirmation.

40 Accrued benefits of duty free imports available to the company in form of transferable import licenses for completed export obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same has no impact on financial statements of the company.

41 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances including amount recoverable from Income Tax, Goods and Service tax , Central Excise, Service Tax, VAT and deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

42 The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company has received Capital Subsidy amounting to Rs.30.00 lacs during 2014-15 under the said scheme credited to capital reserves.

(B) Defined Benefit Plan (unfunded)

(a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

49 Figures of previous year have been re-grouped/re-arranged/re-cast wherever considered necessary.

50 The above audited results for the quarter and year ended 31st March, 2023 has been reviewed by the Audit committee and approved by the Board of Directors at their respective meetings held on 29 May, 2023.

---

Mar 31, 2018

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH, 2018

1 Corporate Overview

Hindustan Adhesives Limited (the ‘Company’) is a Company domiciled in India with its registered office situated at 340/2-A, G.T. Road, Shahdara, Delhi 110095. The Company has been incorporated under the provisions of Companies Act, 1956 and its equity shares are listed on the BSE in India.

The Company Established in 1988, Ventured into manufacturing products for the fast growing packaging industry with establishing Hindustan Adhesives Limited - A Specialty Adhesive Coating Company with the then latest technology of Acrylic emulsion based coating and Hot Melt Adhesive coatings. It further expanded progressively to bring into India the latest and Specialized Double Bubble Film technology in this Industry. The Company has three manufacturing locations (Gautam-budh Nagar in Uttar Pradesh , Roorkee in Uttrakhand and Bhadreshwar - Kutch, in Gujarat), with a marketing presence throughout India and exports to all the major Continents in the world, having won many Leading Exporter Awards from the Govt. of India.

2 Basis of preparation and presentation

A. Statement of compliance

a) These financial statements have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the Companies (Indian Accounting Standards) (Amendment) Rules, 2016, notified under Section 133 of the Companies Act, 2013 (‘the Act’) and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable and other relevant provision of the Act under the historical cost convention on an accrual basis except for certain financial instruments which are measured at fair values, notified under the Act and Rules prescribed there under.

b) The financial statements for the year ended March 31, 2018 are the Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Accordingly, the Company has prepared an Opening Ind AS Balance Sheet as on April 1, 2016 and comparative figures for the year ended March 31, 2017 are also in compliance with Ind AS. An explanation of how the transition to Ind AS has effected the previously reported financial position, financial performance and cash flows of the Company .

B. Basis of Preparation

The financial statements have been prepared on the historical cost basis except for the following items:

C. Functional and presentation currency

These financial statements are presented in Indian Rupees (INR), which is also the Company’s functional currency All financial information presented in Indian rupees have been rounded-off to the nearest rupee except share data or as otherwise stated.

D. Use of estimates

In preparing these financial statements management has made judgments estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from those estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised prospectively.

Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are furnished in the relevant notes.

E. Measurement of fair values

A number of the Company’s accounting policies and disclosures require measurement of fair values, for both financial and non-financial assets and liabilities.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

For the purpose of Fair value disclosures the company has determined classes of assets and liabilities on the basis of nature characteristics and risk of assets or liabilities and the level of fair value hierarchy as explained above this note summarises accounting policies for fair value and the other fair value related disclosures are given in relevant notes.

3A 1. The company has sold 140100 shares of Bagla Polyfilm Limited having face value of Rs 10/- each at the Fair Market Value as certified at Rs 40/- each to Mr. Dhruv Bagla and Mr .Nakul Bagla.

2. The company has sold 113000 shares of Bagla Wellness Private Limited having face value of Rs 10/- each at the Fair Market Value as certified at Rs 25/- each to Mr .Dhruv Bagla and Mr .Nakul Bagla due to which the said company is no more a subsidiary or an associate to the company.

3. As on 31-03-2018, Market value of Mutual Fund of IDBI bank was Rs 5,73,000/-

(ii) Rights, preferences and restriction attached to shares

The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders.

A Term Loans from Allahabad bank is secured by way of First pari passu charge on entire movable and immovable assets of the company both present and future of the companies new unit situated at Kutch (Gujarat) and Unit located at Dadri (Ghaziabad), second pari passu charge on the entire movable and immovable fixed assets of the company including land & construction thereon both present & future of the companies Unit located at Roorkee (Haridwar) to be shared along with IDBI Bank for its existing Term Loan. Loan is repayable in 24 Quarterly installments starting from July -Sept 2018, interest is payable on monthly basis.

B Term Loan from IDBI bank is secured by way first pari passu charge on entire movable and immovable assets of the company both present and future equitable mortgage on first pari passu basis on land and building situated at Roorkee (Haridwar) and second pari-passu charge on the entire movable and immovable assets of the company including land & construction thereon both present and future of the company plant located at Dadri (Ghaziabad) (excluding land admeasuring 0.0253 hectares part of the existing factory land). Second pari-passu charge on entire current assets of the company both present & future and unconditional & irrecoverable personal guarantee of promoter directors Shri M.S. Bagla & Shri L. K. Bagla. Loan is repayable in 20 Quarterly Installment and interest is on monthly basis on due amount.

C Loans from HDFC Bank, Axis Bank and Kotak Mahindra prime Limited are secured by way of hypothecation of the vehicle financed by them.

A Working Capital Loans from Allahabad bank and IDBI bank is secured by way of First pari passu charge on entire Current assets of the company both present and future, second pari passu charge on the entire movable and immovable fixed assets of the company including land & construction thereon both present & future of the companies unit located Unit located at Roorkee (Haridwar), Dadri (Uttar Pradesh) and Kutch (Gujarat).

OTHER NOTES TO THE FINANCIAL STATEMENTS AS AT 31^st MARCH, 2018

4 Explanation of transition to Ind AS

As stated in the accounting policies set out in Note 3, these are the Company’s first financial statements prepared in accordance with Ind AS. For the year ended 31 March 2017, the Company had prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act (‘previous GAAP’).

The accounting policies set out in Note 3 have been applied in preparing these financial statements for the year ended 31 March 2018 including the comparative information for the year ended 31 March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 01 April 2016.

In preparing the Ind AS balance sheet as at 01 April 2016 and in presenting the comparative information for the year ended 31 March 2017, the Company has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows.

Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed

1. Property plant and equipment, capital work-in-progress and intangible assets

As per Ind AS 101 an entity may elect to:

i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date; or

ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the revaluation, broadly comparable to

- fair value;

- or cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general or specific price index.

The elections under (i) and (ii) above are also available for intangible assets that meets the recognition criteria in Ind AS 38, Intangible Assets, (including reliable measurement of original cost); investment property that meets the recognition criteria in Ind AS 40, Investment property; and criteria in Ind AS 38 for revaluation (including the existence of an active market).

iii) use carrying values of property, plant and equipment, intangible assets and investment properties as on the date of transition to Ind AS (which are measured in accordance with previous GAAP and after making adjustments relating to decommissioning liabilities prescribed under Ind AS 101, if any) if there has been no change in its functional currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment. The same election has been made in respect of capital work-in-progress, investment property and intangible assets also.

2. Determining whether an arrangement contains a lease

Ind AS 101 includes an optional exemption that permits an entity to apply the relevant requirements in Appendix C of Ind AS 17 for determining whether an arrangement existing at the date of transition contains a lease by considering the facts and circumstances existing at the date of transition (rather than at the inception of the arrangement).

The Company has elected to avail of the above exemption.

B. Mandatory exceptions

1. Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

a) Fair valuation of financial instruments carried at Fair Value through Profit & Loss (FVTPL) and/ or Fair Value through other comprehensive income (FVOCI).

b) Determination of the discounted value for financial instruments carried at amortised cost.

c) Impairment of financial assets based on the expected credit loss model.

2. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

3. Government Grants

The Company has applied the requirements in Ind AS 109, Financial Instruments, and Ind AS 20, Accounting for Government Grants and Disclosure of Government Assistance, prospectively to government grant existed as at the date of transition to Ind AS i.e. 01 April 2016.

5 Contingent liabilities not provided for in respect of:

(a) Bank Guarantees given by the Company Rs.40.29 Lacs (Previous year Rs.9.69 Lacs)

(b) Foreign letter of credit opened with IDBI Bank & Allahabad Bank for import of Raw material etc. worth Rs 36.82 Lacs (Previous year Rs.113.21 Lacs) and domestic letter of credit for procurement of raw material from domestic supplier Rs. 61.90 Lac (Previous year Rs. NIL)

(c) Excise Duty demand pending appeals at High Court Rs NIL. (Previous year at Rs. 1.95 Lacs) against which protest money deposited NIL (Previous year at Rs. 1.95 Lacs).

(d) Excise duty demand NIL (Previous year at Rs. 15.39 Lacs) against which protest money deposited Rs. NIL (Previous year at Rs. 1.30 Lacs).

6 Estimated Amount of capital commitment for contracts remaining to be executed (net of Capital Advances ) Rs.2,18,33,588 (Previous year NIL)

7 The Gujarat Unit of the company has been under trail run, and the direct expenses and interest charges incurred during the test and trial run are capitalized and revenue from sale of products earn during the period is abated to the capital cost of the project.

8 In accordance with company’s consistent practice, no provision has been made for excise duty aggregating NIL (Previous year Rs. 15.32 Lacs) on finished goods lying at the factory premises, which are accounted for on clearance thereof. However, this will neither affect the Profit / loss nor net current assets for the year. After the GST regime no such adjustment is required.

9 During the year Company has sold a part of its holding in Bagla wellness Pvt. Ltd., to interse related party , due to which the said company is no more a subsidiary or an associate to the company.

10 Balance with Allahabad Bank- Ahmadabad Rs.15,150 having no transactions during the year is subject to Confirmation.

11 Accrued benefits of duty free imports available to the company in form of transferable import licenses for completed export obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same has no impact on financial statements of the company.

12 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances including amount recoverable from Income Tax, Goods and Service tax , Central Excise, Service Tax, VAT and deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

13 Dues to Small Scale Industrial Undertaking could not be identified because necessary information from the suppliers are yet to be received, in absence of which amount outstanding as on Balance Sheet date and names of parties could not be given.

Additionally, the company is in the process of identifying Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprise and to make requisite disclosure.

14 The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company has received Capital Subsidy amounting to Rs.30.00 lacs during 2014-15 under the said scheme credited to capital reserves.

15 Amount paid to Directors as remuneration:

A. Managing Director

B. Whole Time Director

16 Earnings per share (EPS):

17 Details of Employee Benefits as per IND AS -19 are as follows:

(A) Defined contribution Plans

The Company has recognized the following amounts in the profit and loss account:

(B) Defined Benefit Plan (unfunded)

(a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factor.

18 There are no separately reportable segments in terms of IND AS-108.

19 Related Party Disclosure as per IND AS-24 (As certified by the Management):

A) List of Related Parties

1 Where Control Exist:

Subsidiary Company:

Bagla Wellness Private Limited (Part of the year)

Others

Hindustan Foils Ltd.

Agarwal Tracom Pvt. Ltd.

Bagla Polifilms Ltd.

2 Key Management Personal:

Mr. Lalit Kumar Bagla - Director

Mr. Madhu Sudan Bagla - Managing Director

Mr. Suresh Sridhar Ajila - Whole time Director

Mrs. Urmila Goenka - Whole time Director

Mr. Nakul M Bagla - CFO

3 Relative of Key Management Personnel

(With whom transactions taken place during the year)

Mrs. Anju Bagla - wife of Managing Director

Mr. Dhruv Bagla - Son of Managing Director

Mrs. Surbhi Bagla - Daughter in Law of Managing Director

Mrs. Gayathri Ajila - wife of Whole time Director

4 Others

Shree Shree Ishwar Satya Narayanjee & Other Deities Surya Consumers Goods Pvt. Ltd.

20 Figures of previous year have been re-grouped/re-arranged/re-cast wherever considered necessary.

21 The above audited results for the quarter and year ended 31st March, 2018 has been reviewed by the Audit committee and approved by the Board of Directors at their respective meetings held on 30 May, 2018.

---

Mar 31, 2015

1. Contingent liabilities not provided for in respect of:

(a) Bank Guarantees given by the company Rs 0.60 Lacs (Previous year Rs. 0.60)

(b) Foreign letter of credit opened with IDBI Bank & Allahabad bank for import of Raw material etc. worth Rs. 75.12 Lacs (Previous year Rs. 189.83 ) and for procurement of for raw material from domestic supplier Rs. 78.25 Lac (Previous year Rs. 356.43 Lac).

(c) Sales Tax demand pending appeals Rs. Nil (Previous year Rs. 6.04 Lacs).

(d) Excise Duty demand pending appeals at High Court Rs 1.95 Lacs. (Previous year at Rs. 1.95 Lacs) against which protest money deposited Rs. 1.95 (Previous year at Rs. 1.95 Lacs).

(e) Excise duty demand Rs. 15.54 lacs (Previous year at Rs. 0.15 Lacs) against which protest money deposited Rs. 1.30 (Previous year at Rs. 0.15 Lacs).

(f) Custom duties saved under EPCG/ schemes, against which export obligations are pending 36.68 lacs. (Previous year at Rs. 96.48 Lacs).

(g) Custom duties saved under advance licence schemes, against which export obligations are pending 57.43 lacs.

(h) Estimated amount of capital commitments not provided for Rs. Nil (Rs. 3,74,51,590/- USD 6,02,600/-). Advances given against the same Rs. Nil (Rs. 1,87,12,392/- USD 3,01,080/-)

2. In accordance with company's consistent practice, no provision has been made for excise duty aggregating Rs 10.48 Lacs (Previous year Rs. 11.92 Lacs) on finished goods lying at the factory premises, which are accounted for on clearance thereof. However, this will neither affect the Profit / loss nor net current assets for the year.

3. Following banks accounts have no transactions during the year and are subject to confirm by the banks:

a. Allahabad Bank - Ahmedabad 15150.05/-

b. IDBI Bank Ltd. - Mumbai 1450.39/-

c. IDBI Bank Ltd. - Banglore 456.66/-

4. Accrued benefits of duty free imports available to the company in form of transferable import licenses for completed export obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same has no impact on financial statements of the company.

5. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances including amount recoverable from Income Tax, Central Excise, Service Tax, VAT and deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

6. Dues to Small Scale Industrial Undertaking could not be identified because necessary information from the suppliers are yet to be received, in absence of which amount outstanding as on Balance Sheet date and names of parties could not be given.

7. Additionally, the company is in the process of identifying Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprise and to make requisite disclosure.

8. The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company has received Capital Subsidy amounting to Rs. 30.00 lacs during the year under the said scheme which has been taken credited to capital reserve

9. Sales/Purchases includes inter factory transfers which results in inflation on sale figure by Rs.3.55 Lac sale from Ghaziabad factory to Roorkee factory and sale from Roorkee factory to Ghaziabad factory Rs. 18.12 Lacs.

10. Details of Employee Benefits as required by the Accounting Standard -15 "Employee Benefits" are as follows:

2 Defined Benefit Plan (unfunded)

(a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

V The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factor.

11. There are no separately reportable segments in terms of Accounting Standard AS-17.

12. Related Party Disclosure as per Accounting Standard AS-18 (As certified by the Management) is as follows: A). List of Related Parties

1. Where Control Exist:

Hindustan Foils Ltd.

Agarwal Tracom Pvt. Ltd.

Bagla Polifilms Ltd.

Alora Trading Company Ltd

Bagla Wellness Private Limited (Earlier known as Bhutnath Tradelink Private Limited)

2. Key Management Personal:

Mr. Lalit Kumar Bagla - Chairman

Mr. Madhu Sudan Bagla - Mg. Director

Mr. Suresh Sridhar Ajila - Whole time Director

Mrs. Urmila Goenka - Whole time Director

Mr. Nakul M. Bagla - CFO

3. Relative of Key Management Personnel

(With whom transactions taken place during the year) Mrs. Pushpa Devi Bagla Mrs. Anju Bagla Mrs. Gayathri Ajila

4. Others

Shree Shree Ishwar Satya Narayanjee & Other Deities Surya Consumers Goods Pvt. Ltd.

13. Figures of previous year have been re-grouped/re-arranged/re-cast wherever considered necessary.

---

Mar 31, 2014

NIL

---

Mar 31, 2013

1. Contingent liabilities not provided for in respect of:

(a) Bank Guarantees given by the company Rs 0.90 Lacs (Previous year Rs. 0.90)

(b) Letter of Credit for raw material from domestic supplier Rs. 78.89 Lac (Previous year Rs 8.22 Lac)

(c) Sales Tax demand pending appeals Rs. 6.00 Lacs (Previous year Rs. 5.61 Lacs)

(d) Excise Duty demand pending appeals at High Court Rs 1.95 Lacs. (Previous year at Rs. 1.95 Lacs)

(e) Custom duty saved under EPCG/Advance Licence Scheme, against with export/obligation are pending Rs. 37.60 Lacs.

2. In accordance with company''s consistent practice, no provision has been made for excise duty aggregating Rs. 7.13 Lacs (Previous year Rs.7.77 Lacs) on finished goods lying at the factory premises, which are accounted for on clearance thereof. However, this will neither affect the Profit / loss nor net current assets for the year.

3. Sales of finished goods and raw material consumed include Rs. 10,58,92,070/- on account of interdivisional Transfer (Previous yearRs. 10,86,69,384/-).

4. Following bank account have no transaction during the year and are subject to confirm by bank.

a) Allahabad Bank (Ahmedabad) Rs. 15150.05

b) IDBI Bank Ltd. (Bombay) Rs. 1450.39 b) IDBI Bank Ltd. (Bangalore) Rs. 456.66

5. Accrued benefits of duty free imports available to the company in form of transferable advance import licenses for completed export obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same has no impact on financial statements of the company.

6. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances including amount recoverable from Income Tax, Central Excise, Service Tax, VAT and deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

7. Dues to Small Scale Industrial Undertaking could not be identified because necessary information from the suppliers are yet to be received, in absence of which amount outstanding as on Balance Sheet date and names of parties could not be given.

8. Additionally, the company is in the process of identifying Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprise and to make requisite disclosure.

9. The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company is eligible for a Capital Subsidy amounting to Rs.30.00 lacs (maximum) under the said scheme which will be accounted for in the year of receipt.

10 Defined Benefit Plan (unfunded)

a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

(b) Details of defined benefit plan as per Actuarial Valuation are as follows: I Components of employer expenses

V. The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factor.

11. There are no separately reportable segments in terms of Accounting Standard AS-17.

12. Related Party Disclosure as per Accounting Standard AS-18 (As certified by the Management) is as follows:

A) List of Related Parties

1. Where Control Exist:

Hindustan Foils Ltd. Agarwal Tracom Pvt. Ltd. Bagla Polifilms Ltd. Alora Trading Company Ltd

2. Key Management Personal: Mr. Lalit Kumar Bagla - Chairman

Mr. Madhu Sudan Bagla - Mg. Director

Mr. Suresh Sridhar Ajila - Whole time Director

Mrs. U. Goenka - Whole time Director

3. Relative of Key Management Personal

(With whom transactions taken place during the year) Mrs. Pushpa Devi Bagla Mrs. Anju Bagla Mrs. Gayathri Ajila Mr. Nakul Bagla

4. Others

Shree Shree Ishwar Satya Narayanjee & Other Deities Surya Consumers Goods Pvt. Ltd.

13 Figures of previous year have been re-grouped/re-arranged/re-cast wherever considered necessary.

---

Mar 31, 2012

(1) Term Loans No. I from Allahabad bank is secured by way of hypothecation of all movable & immovable assets financed by the said bank out of the proceeds from disbursal of the said loans. Loan was repayble in monthly instalments of Rs.250000/- each together with the interest due on the balance.

(2) Term Loan No. II from Allahabad bank is secured by way of hypothecation of all movable & immovable assets financed by the said bank out of the proceeds from disbursal of the said loans and also equitable mortgage of land and building (to be constructed) situated at plot no. 15 village Mundiyaki.Pargana Mangalore, Tehsil, Roorkee, Distt. Haridwar. Loan is repayable in 20 Quarterly instalments of Rs. 33,10,000/- each and interest is on monthly basis on due amount.

(3) Auto Loans are secured by way of hypothecation of vehicles financed by the Banks.

(4) Loans are further guaranteed by Sh. M.S. Bagla and Sh. L .K.Bagla, Directors of the company.

NOTES

(1) Working Capital Term Loans and Cash Credit Loans are secured against hypothecation of entire stocks of Raw Materials, Work in Progress, Finished Goods, Stores & Spares, Book-Debts & First Charge on Fixed Assets of the Company.

(2) Loans are further guaranteed by Sh. M.S. Bagla and Sh. L .K.Bagla, Directors of the company.

1. Contingent liabilities not provided for in respect of:

(a) Bank Guarantees given by the company Rs 0.90 Lacs (Previous year Rs. 0.90)

(b) Foreign Letter of Credit opened with IDBI Bank for import of raw material etc. worth Rs. Nil (Previous year Rs Nil) and procurement of raw material from domestic supplier Rs. 8.22 Lac (Previous year Rs. 41.93 Lac)

(c) Sales Tax demand pending appeals Rs. 5.61 Lacs (Previous year Rs. 6.40 Lacs)

(d) Excise Duty demand pending appeals at High Court Rs 1.95 Lacs. (Previous year at Rs. 1.95 Lacs)

2. In accordance with company''s consistent practice, no provision has been made for excise duty aggregating Rs. 8.77 Lacs (Previous year Rs. 4.84 Lacs) on finished goods lying at the factory premises, which are accounted for on clearance thereof. However, this will neither affect the Profit / loss nor net current assets for the year.

3. Sales of finished goods and raw material consumed include Rs. 10,86,69,384/- on account of interdivisional Transfer (Previous year Rs 10,66,30,161/-).

4. Accrued benefits of duty free imports available to the company in form of transferable advance import licenses for completed export obligations, which are utilized / availed for own imports in subsequent financial year, have not been accounted for as the same has no impact on financial statements of the company .

5. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances including amount recoverable from Income Tax, Central Excise, Service Tax, VAT and deferred credit from suppliers all are in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet, all these debit/credit balances are subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

6. Dues to Small Scale Industrial Undertaking could not be identified because necessary information from the suppliers are yet to be received, in absence of which amount outstanding as on Balance Sheet date and names of parties could not be given.

7. Additionally, the company is in the process of identifying Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprise and to make requisite disclosure.

8. The Roorkee Unit of Company has been registered under the Central Capital Subsidy Scheme 2003. The Company is eligible for a Capital Subsidy amounting to Rs.30.00 lacs (maximum) under the said scheme which will be accounted for in the year of receipt.

2 Defined Benefit Plan (unfunded)

(a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

9. There are no saparately reportable segments in terms of Accounting Standard AS-17.

10. Related Party Disclosure as per Accounting Standard AS-18 (As certified by the Management) is as follows: A) List of Related Parties

1. Where Control Exist:

Hindustan Foils Ltd.

Agarwal Tracom Pvt. Ltd.

Bagla Polifilms Ltd. (Formerly Known As Rani Sati Enterprises Pvt. Ltd.)

Alora Trading Company Ltd

2. Key Management Personnel:

Mr. Lalit Kumar Bagla - Chairman

Mr. Madhu Sudan Bagla - Mg. Director

Mr. Suresh Ajila - Whole time Director

Mr. K.C. Dwivedi - Whole time Director (Resigned in Feb-2012)

Mrs. Urmila Goenka - Whole time Director

3. Relative of Key Management Personnel

(With whom transactions taken place during the year)

Mrs. Anju Bagla

Mrs. Gayathri Ajila

Mr. Nakul Bagla

4. Others

Shree Shree Iswar Satya Narayanjee & Other Deities Ms. Sonam Goenka

# Including Interdivisional Transfer 1015.31 MT equivalent to 42070729 SQM (Previous year 1045.39 MT equivalent to 43251197 SQM) valuing Rs.1086.69 Lacs (Previous Year Rs.1066.30 Lacs)

11. Figures of previous year have been re-grouped/re-arranged/re-cast wherever considered necessary.

---

Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

(a) Bank Guarantees given by the company Rs 0.90 Lacs (Previous year Rs. 0.90)

(b) Foreign Letter of Credit opened with IDBI Bank for import of raw material etc. worth Rs. 17.62 Lacs ( Previous year Rs.59.91 )and procurement of raw material from domestic suppliers NIL (Previous year Rs. Nil)

(c) Sales Tax demand pending appeals Rs. 34.40 Lacs (Previous year Rs. 30.70 Lacs)

(d) Excise Duty demand pending appeals at High Court Rs 1.95 Lacs. (Previous year at Rs. 1.95 Lacs)

2. The Company has changed its accounting police with regard to charging depreciation on Building, Office Equipments, Air conditioners, furniture & fixtures and vehicles on written down value method, which were hitherto, depreciated on straight line basis. As a result of the change the depreciation for the year is higher by Rs. 1,02,38,411/-and profit for the year is lower by Rs. 1,02,38,411/-

3. The amount outstanding on loans of Banaras State Bank (merged with Bank of Baroda) was settled and repaid in full as per negotiation with them during the financial year 2008-2009. As a result Rs. 54.33 Lacs being gain on settlement had been carried as extra ordinary item to the Profit & Loss Account

4. In accordance with companys consistent practice, no provision has been made for excise duty aggregating Rs. 7.78 Lacs (Previous year Rs. 4.86 Lacs) on finished goods lying at the factory premises, which are accounted for on clearance thereof. However, this will neither affect the Profit / loss nor net current assets for the year.

5. Sales of finished goods and raw material consumed include Rs. 10,3851,827/- on account of interdivisional Transfer (Previous year. 9,48,06,037/-).

6. Accrued benefits of duty free imports available to the company in form of transferable advance import licenses for completed export obligations amounting to Rs. 1.85 Lacs, which have been utilized / availed in subsequent financial year, have not been accounted for.

7. In the opinion of the Board and to the best of their knowledge and belief, the value on realization of current assets, loans and advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet. The debit/credit balances of parties are however, subject to confirmations and adjustments, if any. The management is hopeful of recovering the debit balances, which are outstanding since a long.

8. Working Capital Term loans due (Principal amount) within one year are 103.08 Lacs (Previous year 103.08 Lacs)

9. Dues to Small Scale Industrial Undertaking could not be identified because necessary information from the suppliers are yet to be received, in absence of which amount outstanding as on Balance Sheet date and names of parties could not be given.

10. Additionally, the company is in the process of identifying Micro, Small and Medium enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprise and to make requisite disclosure.

11. Loans & Advances include due from officers Rs.1,63,132 (Previous year Rs. NIL) Maximum amount outstanding at any time during the year Rs. 1,63,132 (Previous year Rs. NIL).

12. Travelling & Conveyance includes Directors Travelling of Rs. 19,89,799/,

2 Defined Benefit Plan (unfunded)

(a) A General description of the employees Benefit Plan:

The Company has obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

V. The assumption of the future salary increases, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factor.

13. There are no separately reportable segments in terms of Accounting Standard AS-17.

14. Related Party Disclosure as per Accounting Standard AS-18 (As certified by the Management) is as follows: A). List of Related Parties

1. Where Control Exist:

Hindustan Foils Ltd.

Agarwal Tracom Pvt. Ltd.

Bagla Polifilms Pvt. Ltd.

(Formerly Known As Rani Sati Enterprises Pvt. Ltd.

2. Key Management Personal:

Mr. Madhu Sudan Bagla - Mg. Director

3. Relative of Key Management Personnel

(With whom transactions taken place during the year)

Mrs. Anju Bagla

Mr. Dhruv Bagla (U/G M.S. Bagla)

4. Others

Shree Shree Iswar Satya Narayanjee & Other Trust Mr. K.C. Dwivedi - Executive Director

# Including Interdivisional Transfer 1091.13 MT equivalent to 45141011 SQM (Previous year 945.93 MT equivalent to 40654435 SQM) valuing Rs. 1038.52 Lacs (Previous Year Rs.948.06 Lacs).