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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Innovative Tech Pack Ltd.

Mar 31, 2024

(a) As per the Management, Investments in National Saving Certificates(NSC) is held in the name of Managing Director of the company and the same has been pledged with sales tax authority at Rudrapur (Uttaranchal) on behalf of the Company. However there is not document available in the company to verify it also there is not reasonable certanity to recover it in future therefore it has been written off in the books of accounts on 31/03/2023.

(b) Security Deposits affirmation from party is not recieved.

(a) A case filed against customer Maharashtra Bio Fertilizers India Private Limited amounting to Rs 1,41,20,828 in National Company Law Tribunal on 07.01.2020. Consent Letter has been signed with Customer in Marchâ 2022, where he is agree to pay Amount of Rs. 169.00 Lakhs (Including Interest) during the period of Marchâ2022 to Sepâ2022 as per consent terms. However The customer only repaid amount of Rs. 35 Lakh out of Rs. 169.00 Lakhs and again defaulted in balance payment. The company has again filed the case to NCLT for further action against the party and the company is certain to recover full amount through process of Law hence no provision of ECL has been created by the Company.

(b) Balance from Debtors are subject to confirmation and reconciliation as as on 31st Marchâ2024.

Confirmations for FDR with Sales tax ETO Nalagarh amounting '' 25,000 and FDR With IOB amounting '' 100,000 are not available with the company. Hence it has been written off during FY 2022-23

**Bank has charged some charges in Dividend Account-AXIS BANK LTD A/C NO. 917020067706115(DIVIDEND A/ C FY16-17) which is against the law and for rectification the communication with the bank personal is in process by the company on the date of financials. Also the Total Unpaid dividend as on 31st march in Books is amounting to '' 12,68,043/- for with shareholder wise and amount wise records are not available in the Company for verificaiton of the same.

(a) Sales Tax Recoverable (Rudrapur ) amounting '' 263,146 is pending with government authorities for which status report not ascertained. As per the management the Recovery of Sale Tax Amounting to Rs. 2,63,146/- is reasonably certain and has not impaired by the company however for verification of same no documents are available within the company.

* Company has provided prepaid expenses , towards adavnce processing charging paid for facilities under process

** A case filed against Majestic Engineering Industries amounting to Rs 6,51,47,361 in National Company Law Tribunal on 07.01.2020. The status of the case as on the date of financials is that the Majestic Engineering Industries will go into the liquidation processing and claim will be settled as per the distribution ranking prescribed under IBC. In view of management, there is high probability of recovery of dues from creditors. Hence, no provision is recorded in Books of accounts.

(a) Rights, preferences and restrictions attached to Equity Shares

The company has only one class of equity shares . Each Holder of equity share is entitled to one vote per share .In the event of liquidation of the company, the holders of the equity shares shall be entitled to receive remaining assets of the company , after adjustment of all the preferential payments. The distribution will be made in the proportion of holding of equity shares. The Dividend proposed ( if any)by the board is subject to approval of shareholders in the following Annual General Meeting

* Term Loan from Axis Bank Ltd. is secured by way of first charge on currents assets (Present and future) & moveable fixed assets (Excluding Machineries and vehicles is specifically charged with respective lenders) of the company and having equitable mortgage on Factory Land and Buildings situated at Plot No. 32, Sector-4, Pantnagar ,Uttarkhand & situated at 51, Roz ka Meo, Sohna, Gurgaon. The Credit Facility is further having equitable mortgage on commercial office space situated at 803-805, 8th Floor, Tower 2, Assochem Business Cresterra, Sector-135, Noida in the name of Mr. K. Sayaji Rao & on residential property situated at 20/27, Prakasam Road, Vijaywada in the name of Mrs. K. Pratibha Rao. The Credit Facility is further secured by Personal guarantees of Mr. K. Sayaji Rao, Mr. K. Satish Rao & Mrs. K. Pratibha Rao, Directors of the company. The Rate of interest is MCLR 2.75% i.e 11.00% p.a

In Management view, there is not any Reasonable Certainty for Future Profits thatâs why Deferred Tax is Not Recognised in Statement of profit & Loss during the FY 2023-24 also the MAT Credit Entitlement as per ITR was Rs. 4.02 crore from which only 1 crore is recongized earlier and no MAT Credit is recognized during the year as there is not any reasonable certainity for future profits.

Negative balance represents Deferred Tax Asset as at 31.03.2024.

* Working Capital loan from Axis Bank Ltd. is secured by way of first charge on currents assets(Present and future) & moveable fixed assets (Excluding Machineries and vehicles is specifically charged with respective lenders) of the company and having equitable mortgage on Factory Land and Buildings situated at Plot No. 32, Sector-4, Pantnagar ,Uttarkhand & situated at 51, Roz ka Meo, Sohna, Gurgaon. The Credit Facility is further having equitable mortgage on commercial office space situated at 803-805, 8th Floor, Tower 2, Assochem Business Cresterra, Sector-135, Noida in the name of Mr. K. Sayaji Rao & on residential property situated at 20/27, Prakasam Road, Vijaywada in the name of Mrs. K. Pratibha Rao. The Credit Facility is further secured by Personal guarantees of Mr. K. Sayaji Rao, Mr. K. Satish Rao & Mrs. K. Pratibha Rao, Directors of the company.

* Company has not provided any Provision for Expenses against âBill Discounting on Customer Invoicesâ and on acceptances of âLetter of Creditsâ. In view of the management, that there will be no material impact due to booking of such expenses..

* Bonus of Rs. 13.65 Lakhs pertaining to FY 2020-21 and FY 2021-22 is still pending to be paid as on 31st March 2024 though the exact breakup of employee wise financial year wise not bonus available. Further For the FY 2023-24 Bonus of Rs 14.68 Lakhs Is provided by the company though the detailed calculation is not available for the review.

*ESIC/PF/TDS paid by the company during the FY in aggrigate were in excess of Liabilities provided during the year by the company in books however for detailed reconciliation to check the correctness of the same, no supporting workings are available in the company record.

* GST Input claimed in Books of Accounts and GSTR-3B are not in agreement with each other. For which exact cause for the mismatch were provided by the company and it will be mitigated by the company in current year.

* Total Unpaid dividend as on 31st march in Books is amounting to '' 12,68,043/- for with shareholder wise and amount wise records are not available in the Company for verificaiton of the same.

** During the year ending March 31,2024, actuarial valuation certificate of Gratuity and Leave Encashment has been not taken by the management for the FY 2023-24. Disclosures have been made as per the actuarial valuation done for the year ended 31-03-2023.

* The individual wage payment of Contract Workers made by the company is above the limits specified in the respective laws governing Provident Fund (PF) and Employee State Insurance (ESI) and accordingly, no prima facie liability to pay PF & ESI arises on the company. Further on workers requests, the company pays wages in cash. All relevant process for due control has been exercised. During the F.Y 2023-24, company has paid Rs 223 Lakhs (FY 2022-23: Rs. 158 Lakhs) wages in cash.

30. Commitments and Contingencies

As per information available with the management there is a contingent liability of '' 242.02 Lakhs (Previous Year '' 281.33 Lakhs) as at 31st March, 2024.

31. Related Party Disclosures

a. Associates of the reporting enterprise and the investing party in respect of which the reporting enterprise is an associate or a joint venture

N.A.

b. Individual owning directly or indirectly an interest in the voting power of reporting enterprise that give them control or significant influence over the enterprises, And relative of any such individual

Mr. K Sayaji Rao Mr. K Satish Rao

c. Key management personnel and their relatives

Mr. K. S Rao (Director)

Mr. K Satish Rao (Managing Director)

Mrs. K. Pratibha Rao (Wife of MD)

Mrs. Rashi Chapperwal (Wife of WTD)

d. Enterprises over which any person described in (c) or (d) is able to exercise significant influence.

Innovative Datamatics Limited Jauss Polymers Limited Innovative Pet Containers Limited

35. Segment Reporting

The Company is engaged in manufacturing of Plastic Pet Jars, Containers, Creates, bottles and caps. Considering the nature of Companyâs business and operations, there are no separate reportable segments (business or geographical) in accordance with the requirements of Indian Accounting Standard 108 âSegment Reportingâ. The Chief Operational Decision Maker(CODM) monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

36. In the opinion of the Management and to the best of their knowledge and believe, the value on realization of current assets, Loan & Advances in the ordinary course of business would not be less than the amount at which they are stated in the Balance Sheet.

37. Financial Risk Management Objective And Policies

The company is exposed to market risk, credit risk and liquidity risk. The Groupâs senior management oversees the management of these risks. It is the Companyâs policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings. The company is exposed to interest rate risk on variable rate long term borrowings.

The company has elaborate risk management systems to inform Board members about risk management and minimization procedures.

i. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company is exposed to foreign currency risk as there are few transactions in foreign currency. Particulars of un-hedged foreign currency exposures as at the Balance Sheet date are NIL (previous year NIL). Hence, no further disclosure is required under this section.

ii. Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of Fixed & Floating Rate Borrowings. The following Table shows the blend of Companyâs Fixed & Floating Rate Borrowings in Indian Rupee:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

iii. Price Risk

Commodity price fluctuation can have an impact on the demand of Plastic Pet Jars, Containers, Creates, bottles and capsfor particular product therefore, company continuously keep on track the commodity price movement very closely and take advance production decision accordingly.

In addition to the above company also maintain a strategic buffer inventory to ensure that such disruptions do not impact the business significantly.

b) Credit risk

Credit risk arises from the possibility that the counterparty will default on its contractual obligations resulting in financial loss to the company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

To manage this, the Company periodically assesses the financial reliability & credibility of customers, taking into account the financial conditions, current economic trends, and analysis of historical bad debts and ageing of accounts receivable.

The Company has well defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. Impairment analysis is performed based on historical data at each reporting date on an individual basis. However a large number of minor receivables are regularly monitored and assessed.

c) Liquidity Risk

Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The companyâs treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the companyâs net liquidity position through rolling, forecast on the basis of expected cash flows.

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date basedon contractual undiscounted payments:

39. Information on lease transactions pursuant to Ind AS 116 - Leases

Until March 31, 2019, the Company recognized leases in accordance with Ind AS 17. A lease was defined as an agreement whereby the lessor conveys to the lessee in return for a series of payments the right to use an asset for an agreed period of time. The lessor and lessee accounted for the lease on the basis of the distribution of the risks and rewards associated with the leased asset.

In so far as all the substantial risks and rewards were transferred to the Company as lessee, the respective leased assets were capitalized at fair value or the lower present value of the minimum lease payments and depreciated using the straight-line method on the basis of the useful life of the underlying asset or the lease term, if this was shorter. The payment obligations resulting from future lease payments were discounted and recognized as a liability.Where the Company was the lessee in operating leases, in other words, if not all material risks and rewards were transferred, the lease or rental payments were recognized directly as expenses in the statement of Profit and Loss. Since April 1,2019, the Company has recognized leases in accordance with Ind AS 116. This defi nes a lease as a contract, or part of a contract, whereby the lessor conveys to the lessee the right to use an asset for an agreed period of time in exchange for consideration.

On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-of-use asset, and fi nance cost for interest accrued on lease liability. Some practical expedients permitted by the standard are used, notably:

â¢ To not reassess upon transition whether an existing contract contains a lease. The definition of a lease under Ind AS 116 has been applied only to contracts entered into or changed on or after April 01, 2019.

â¢ For transition, the Company has elected not to apply the requirements of Ind AS 116 to leases which are expiring within 12 months from the date of transition by class of asset

â¢ The recognition exemptions for short-term leases and leases of low-value assets.

â¢ To apply Ind AS 37 for onerous leases instead of performing an impairment review.On application of Ind AS 116, the nature of expenses has changed from lease rent in previous periods to depreciation cost for the right-of-use asset, and finance cost for interest accrued on lease liability.

Company as a Lessor:

The Company is not required to make any adjustments on transition to Ind AS 116 for leases in which it acts as a lessor. The Company accounted for its leases in accordance with Ind AS 116 from the date of initial application. The Company does not have any signifi cant impact on account of sub-lease on the application of this standard.The Company has given its building space, lying under property, plant and equipments, on operating lease through operating lease arrangements. Income from operating leases is recognised as revenue on a straight-line basis over the lease term.

40. Capital Management a. Risk Management

The groupâs objectives when managing capital are:

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

ii) maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares.

Fair value hierarchy

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company uses the following hierarchy for determining and disclosing the fair value of the financial instruments by valuation techniques,

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

Level 2: Other techniques for which all the inputs which have a significant effect on the recorded fair values are observable, either directly or indirectly

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

Assumptions and valuation technique used to determine fair value

The following methods and assumptions were used to estimate the fair values

i. Fair value of cash and deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

ii. Long-term variable-rate borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values.

42. GST Input claimed in Books of Accounts and GSTR-3B are not in agreement with each other. For which exact cause for the mismatch were provided by the company and it will be mitigated by the company in current year.

43. Due Date of Last Quarter of TDS return submission is 31st May 2024 due to which TDS receivable pertaining to last quarter are not appearing in the Form 26AS due to which TDS receivable reconciliation as on 31st Marchâ2024 has not been done.

44. Internal Controls

Company does not have any mechanism to close year wise books in its reporting software SAP. Further, management do not possess internal audit report for the period 2023-24.

45. Balance Confirmations

In the process of obtaining balance confirmation and periodic account reconciliation with trade receivables and trade payables as at March 31,2024, the balances of certain parties under aforesaid heads are subject to reconciliation and Confirmation. The impact, if any that may result on reconciliation and confirmaiton of the balances could not be ascertained.

*# Remarks on net capital Turnover Ratio:- working capital was positive in FY 22-23 and FY 23-24 though there is no major changes in turnover in both the years however there is slighly downfall in working capital, thatâs why ratio showing highly positive to 28.63. Because of this variance is showing -27.76%. As such there is not any major change in working capital.

48. Previous yearâs figures

These have been regrouped / reclassified where necessary, to confirm to current yearâs classification.

Mar 31, 2023

o) . Provision for Liabilities and charges, Contingent Liabilities and Contingent Assets

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although, there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

p) . Earnings per share

The Company presents basic and diluted earnings per share (âEPSâ) data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

q) . Corporate social reposnsibility expenditure

Pursuant to the requirement of section 135 of the Act and rules thereon and guidance note on âAccounting for expenditure on Corporate Social Responsibility activitiesâ issued by the ICAI, with effect from 01^st April, 2015, CSR expenditure is recognized as an expense in the statement of Profit & Loss in the period in which it is incurred, if any. During the Year, company has not incurred any CSR expenditure.

r) . Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 âStatement of Cash Flowsâ, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

s). Leases

The company has applied Ind AS 116 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under Ind AS 17.

As a Lessee

The company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, companyâs incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

- Fixed payments, including in-substance fixed payments;

- Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

- Amounts expected to be payable under a residual value guarantee; and

- The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the companyâs estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company presents right-of-use assets that do not meet the definition of investment property in âproperty, plant and equipmentâ and lease liabilities in âloans and borrowingsâ in the statement of financial position.

Short-term leases and leases of low-value assets

The company has elected not to recognise right-of-use assets and lease liabilities for short term leases of real estate properties that have a lease term of 12 months. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Under Ind AS 17

In the comparative period, a lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards incidental to the ownership of an asset to the Company. All other leases are classified as operating leases.

Finance leases are capitalised at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Companyâs general policy on the borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.

As a Lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

Arrangements in the Nature of Lease

The Company enters into agreements, comprising a transaction or series of related transactions that does not take the legal form of a lease but conveys the right to use the asset in return for a payment or series of payments. In case of such arrangements, the Company applies the requirements of Ind AS 116 - Leases to the lease element of the arrangement. For the purpose of applying the requirements under Ind AS 116 - Leases,payments and other consideration required by the arrangement are separated at the inception of the arrangement into those for lease and those for other elements. During the year, no arrangement is treated in nature of Lease.

t). Non-Current assets or disposal held for sale and discontinued operations Non-current assets or disposal held for sale

Non-current assets or disposal groups are classified as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use.

Such assets or disposal groups are classified only when both the conditions are satisfied -

1. The sale is highly probable, and

2. The asset or disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such assets.

Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification as held for sale, and actions required to complete the plan of sale should indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

Noncurrent assets or disposal group are presented separately from the other assets in the balance sheet. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the balance sheet.

Upon classification, non-current assets or disposal group held for sale are measured at the lower of carrying amount and fair value less costs to sell. Non-current assets which are subject to depreciation are not depreciated or amortized once those classified as held for sale.

Discontinued Operation

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The results of discontinued operations are presented separately in the statement of profit and loss.

35. Segment Reporting

37. Financial Risk Management Objective And Policies

a) Market risk

The company has elaborate risk management systems to inform Board members about risk management and minimization procedures.

i. Foreign Currency Risk

ii. Interest rate risk

iii. Price Risk

In addition to the above company also maintain a strategic buffer inventory to ensure that such disruptions do not impact the business significantly.

b) Credit risk

c) Liquidity Risk

The table below provides details regarding the remaining contractual maturities of financial liabilities at the reporting date basedon contractual undiscounted payments:

39. Information on lease transactions pursuant to Ind AS 116 - Leases

In so far as all the substantial risks and rewards were transferred to the Company as lessee, the respective leased assets were capitalized at fair value or the lower present value of the minimum lease payments and depreciated using the straight-line method on the basis of the useful life of the underlying asset or the lease term, if this was shorter. The payment obligations resulting from future lease payments were discounted and recognized as a liability.Where the Company was the lessee in operating leases, in other words, if not all material risks and rewards were transferred, the lease or rental payments were recognized directly as expenses in the statement of Profit and Loss.Since April 1, 2019, the Company has recognized leases in accordance with Ind AS 116. This defi nes a lease as a contract, or part of a contract, whereby the lessor conveys to the lessee the right to use an asset for an agreed period of time in exchange for consideration.

Company as a Lessor:

40. Capital Management a. Risk Management

The groupâs objectives when managing capital are:

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

ii) maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of the financial instruments by valuation techniques,

43. Due Date of Last Quarter of TDS return submission is 31st May 2023 due to which TDS receivable pertaining to last quarter are not appearing in the Form 26AS due to which TDS receivable reconciliation as on 31st Marchâ2023 has not been done.

44. Internal Controls

Company does not have any mechanism to close year wise books in its reporting software SAP. Further, management do not possess internal audit report for the period 2022 - 2023.

45. Balance Confirmations

In the process of obtaining balance confirmation and periodic account reconciliation with trade receivables and trade payables as at March 31,2023, the balances of certain parties under aforesaid heads are subject to reconciliation and Confirmation. The impact, if any that may result on reconciliation and confirmaiton of the balances could not be ascertained.

46. Previous yearâs figures

These have been regrouped / reclassified where necessary, to confirm to current yearâs classification.

As per our report of even date attached For and on behalf of the Board of Directors

For ASJS AND COMPANY

Chartered Accountants

Firmâs Registration No.032456N

Sd/- Sd/- Sd/-

Sanyam Chopra K.S.Rao K.Satish Rao

Partner Chairman Managing Director

Membership no. - 546280 DIN-01045817 DIN-02435513

UDIN :

Sd/- Sd/-

Place: Panipat Mohit Chauhan Sanjay Saigal

Date: 30th Mayâ2023 Company Secretary CFO

Mar 31, 2018

1. CORPORATE OVERVIEW

Innovative Tech Pack Limed (referred to as âITPLâ âThe company hereinafter â)is a listed entity incorporated in India. The registered office of the company is located at Plot No. 51, Roz-Ka-Meo, Industrial Area Sohna, Mewat Haryana- 122103, India.

The Company is engaged in the business of Manufacturing & Reselling of Plastic Bottles, Jars, Containers, and Pre-forms & its Caps.

2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Basis of preparation and compliance with Ind As

(i) For all periods upto and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) in India and complied with the accounting standards (Previous GAAP) as notified under Section 133 of the Companies Act, 2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014, as amended, to the extent applicable, and the presentation requirements of the Companies Act, 2013.

In accordance with the notification dated February 16, 2015, issued by the Ministry of Corporate Affairs, the Company has adopted Indian Accounting Standards (Ind AS) notified under Section 133 read with Rule 4A of Companies (Indian Accounting Standards) Rules, 2015, as amended, and the relevant provisions of the Companies Act, 2013 (collectively, âInd ASâ) with effect from April 1, 2016 and the Company is required to prepare its financial statements in accordance with Ind AS for the year ended March 31, 2018. These financial statements as and for the year ended March 31, 2018 (the âInd AS Financial Statementsâ) are the first financial statements, the Company has prepared in accordance with Ind AS.

(ii) These financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013. The financial statements have also been prepared in accordance with the relevant presentation requirements of the Companies Act, 2013. The Company adopted Ind AS from 1st April, 2017.

(iii) Up to the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the requirements of previous Generally Accepted Accounting Principles (GAAP), which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company''s first Ind AS financial statements. The Company has followed the provisions of Ind AS 101-âFirst Time adoption of Indian Accounting Standardsâ (Ind AS 101), in preparing its opening Ind AS Balance Sheet. The date of transition to Ind AS is 1st April, 2016. Details of the exceptions and optional exemptions availed by the Company and principal adjustments along with related reconciliations are detailed in Note 31 (First-time Adoption).

(iv) These financial statements were approved for issue by the Board of Directors on May 30, 2018.

b). Basis of Preparation

The financial statements are prepared in accordance with the going concern basis using historical cost convention, except for certain items that are measured at fair values, as explained in the accounting policies.

The Financial Statements of the Company have been prepared to comply with the Indian Accounting standards (âInd AS''), including the rules notified under the relevant provisions of the Companies Act, 2013.

Company''s Financial Statements are presented in Indian Rupees (''), which is also its functional currency and all values are rounded to the nearest lakhs (''00,000), except when otherwise indicated.

Fair value measurement

Fair Value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Fair value for measurement and/or disclosure purposes in these financial statements is determined on such a basis, except for share-based payment transactions that are within the scope of Ind AS 102 - Share-based Payment, leasing transactions that are within the scope of Ind AS 17 - Leases, and measurements that have some similarities to fair value but are not fair value, such as net realisable value in Ind AS 2 - Inventories or value in use in Ind AS 36 - Impairment of Assets.

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods.

c). Functional and presentation currency

These Ind AS Financial Statements are prepared in Indian Rupee which is the Company''s functional currency.

All financial information presented in Rupees has been rounded to the nearest lakhs with two decimals.

d). Operating Cycle

All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

(a) Rights, preferences and restrictions attached to Equity Shares

The Company has issued 6,00,0000 convertible share warrants on preferential basis to Mr. Ketineni Sayaji Rao, promoter of the Company having Face Value of Rs. 1/- per warrant at a premium of Rs.33.37/- per warrant on 10th November 2016. The company has received 25% of total consideration and balance 75% is to be received at the time of allotment of equity shares pursuant to exercise of option of conversion into equity shares against such warrants. Warrant holder is entitled to one equity shares of Rs. 1/-each fully paid up for each Warrant within a period of 18 months from the date of allotment of warrant at such price as may be arrived at in accordance with the SEBI (ICDR) Regulations.

Convertible share warrants has been converted into Equity share on 23-April-2018 to Mr. Ketineni Sayaji Rao.

âBorrowings- There is no amount of default as on the balance sheet date in repayment of loans and interest.

** Term Loan from Axis Bank Ltd. is secured by way of first charge on currents assets(Present and future) & moveable fixed assets (Excluding Machineries and vehicles is specifically charged with respective lenders) of the company and having equitable mortgage on Factory Land and Buildings situated at Plot No. 32, Sector-4, Pantnagar ,Uttarkhand &situated at 51, Roz ka Meo, Sohna, Gurgaon. The Credit Facility is further having equitable mortgage on commercial office space situated at 803-805, 8th Floor, Tower 2, Assochem Business Cresterra, Sector-135, Noida in the Mr. K. Sayaji Rao& on residential property situated at 20/27, Prakasam Road, Vijaywada in the name of Mrs. K. Pratibha Rao. The Credit Facility is further secured by Personal guarantees of Mr. K. Sayaji Rao, Mr. K. Satish Rao & Mrs. K. Pratibha Rao, Directors of the company. The Rate of interest is MCRL 2.75% i.e 11.00% p.a

** Term Loans(Other than Axis Bank Ltd.) represents loans taken for acquiring vehicle/ equipments from Banks and NBFCs ranging interest from 08%-18% p.a. ,with maturity period over one year and are secured by hypothecation of the respective assets

*** All loans are guaranteed by Promoters Directors personally

* Working Capital loan from Axis Bank Ltd. is secured by way of first charge on currents assets(Present and future) & moveable fixed assets (Excluding Machineries and vehicles is specifically charged with respective lenders) of the company and having equitable mortgage on Factory Land and Buildings situated at Plot No. 32, Sector-4, Pantnagar ,Uttarkhand &situated at 51, Roz ka Meo, Sohna, Gurgaon. The Credit Facility is further having equitable mortgage on commercial office space situated at 803-805, 8th Floor, Tower 2, Assochem Business Cresterra, Sector-135, Noida in the Mr. K. Sayaji Rao& on residential property situated at 20/27, Prakasam Road, Vijaywada in the name of Mrs. K. Pratibha Rao. The Credit Facility is further secured by Personal guarantees of Mr. K. Sayaji Rao, Mr. K. Satish Rao & Mrs. K. Pratibha Rao, Directors of the company.

3. Commitments and Contingencies

As per information available with the management there is a contingent liability of Rs. 69 Lakhs (Previous Year NIL) as at 31st March, 2018.

4. Defined benefit plan

Disclosures including sensitivity analysis in respect of gratuity and leave encashment have been made as per the valuation of employee benefit done for the year ended 31-03-18

The Company off sets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

5. Corporate Social Responsibility (CSR)

CSR amount required to be spent as per section 135 of the Companies Act, 2013 read with schedule 7, thereof by the company during the year is Rs. 10.58 Lakhs (Previous Year Nil).

6. Segment Reporting

The Company is engaged in manufacturing of pet jars/bottles and caps. Considering the nature of Company''s business and operations, there are no separate reportable segments (business or geographical) in accordance with the requirements of Indian Accounting Standard 108 âSegment Reporting''. The Chief Operational Decision Maker(CODM) monitors the operating results as one single segment for the purpose of making decisions about resource allocation and performance assessment and hence, there are no additional disclosures to be provided other than those already provided in the financial statements.

7. In the opinion of the Management and to the best of their knowledge and believe, the value on realization of current assets, Loan & Advances in the ordinary course of business would not be

8. Balance of Trade Receivable / Payable Loans / Advances are subject to confirmation.

9. Financial Risk Management Objective And Policies

The company is exposed to market risk, credit risk and liquidity risk. The Group''s senior management oversees the management of these risks. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

a) Market risk

The company has elaborate risk management systems to inform Board members about risk management and minimization procedures.

The sensitivity analyses in the following sections relate to the position as at 31-03-18 and 31-03-17.

i. Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company is not exposed to any foreign currency risk as there is no transaction in foreign currency. Particulars of un-hedged foreign currency exposures as at the Balance Sheet date are NIL (previous year NIL). Hence, no further disclosure is required under this section.

ii. Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Any changes in the interest rates environment may impact future rates of borrowing. The Company mitigates this risk by maintaining a proper blend of Fixed & Floating Rate Borrowings. The following Table shows the blend of Company''s Fixed & Floating Rate Borrowings in Indian Rupee:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

iii. Price Risk

Commodity price fluctuation can have an impact on the demand of bottles/ caps for particular product therefore, company continuously keep on track the commodity price movement very closely and take advance production decision accordingly.

In addition to the above company also maintain a strategic buffer inventory to ensure that such disruptions do not impact the business significantly.

b) Credit risk

c) Liquidity Risk

Liquidity risk is defined as the risk that company will not be able to settle or meet its obligation on time or at a reasonable price. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risk are overseen by senior management. Management monitors the company''s net liquidity position through rolling, forecast on the basis of expected cash flows.

10. Capital Management

a. Risk Management

The group''s objectives when managing capital are:

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

ii) maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares.

Fair value hierarchy

The Company uses the following hierarchy for determining and disclosing the fair value of the financial instruments by valuation techniques,

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

Level 2: Other techniques for which all the inputs which have a significant effect on the recorded fair values are observable, either directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

Assumptions and valuation technique used to determine fair value

The following methods and assumptions were used to estimate the fair values

11. Standards issued but not yet effective Ind AS 115 revenue from Contracts with Customers

Amended Ind AS 115 was notified on March 28, 2018 and establishes a five step model to account for revenue arising from contracts with customers. The revenue standard with supersede all current revenue recognition requirements under Ind AS. This standard will come in to force from accounting period commencing on or after April 01, 2018. The company is evaluating the requirements of the Amended and the effect on the financial statements is being evaluated.

12. Previous yearâs figures

These have been regrouped / reclassified where necessary, to confirm to current year''s classification.

13. Reconciliation

These financial statements, for the year ended 31 March 2018, have been prepared in accordance with Ind AS, for the purposes of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101- First time adoption of Indian Accounting Standards, with April 01, 2016 as the transition date and IGAAP as the previous GAAP.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

- Equity as at 1st April, 2016;

- Equity as at 31st March, 2017;

- Balance Sheet as at 1st April, 2016

- Balance Sheet as at 31st March, 2017

- Profit & Loss a/c as on 31^st March''2017

- Total comprehensive income for the year ended 31st March, 2017

Explanations for reconciliation of Balance Sheet and Total Comprehensive Income as previously reported under Previous GAAP to Ind AS

In preparing these financial statements, the Company has availed certain exemptions and exceptions from retrospective application of certain requirements under Ind AS, as explained below:

1. Company decides to use IND AS 101 exemption for continuing its Plant, Property &Equipment (Except Lease Hold Land Measure at fair value as per IND AS 17) at previous GAAP carrying amount.

2. IND AS 101 does not require IND AS 17 to be applied retrospectively to Lease hold lands and it''s allow prospective application of Lease hold Land at the date of transition to IND AS. Based on the exemption of IND AS 101, Company classify its lease hold lands as finance leaseas on 1^st April, 16 i.e. on the date of transition & recognize assets and liabilities at fair value on that date and difference is recognised in retained earnings.

3. Loan Processing Fees/transaction cost are considered for calculating effective interest rate under IND AS. Further, the impact for the periods subsequent to the date of transition is reflected in statement of Profit & Loss.

4. Company valued its Investment in Subsidiaries, Jointly Controlled entities and Associates at cost i.e. previously GAAP carrying amount at the transition date i.e. 01^st April''16.

5. Security Deposit: Under Ind AS 109- financial instruments, security deposit are required to be valued at fair value and difference between cost and fair value is to be amortised over the period of security as rental expenses and consequently interest income to be booked using effective interest method in statement of Profit & loss.

6. Dividend: Under previous GAAP, dividends on Equity shares recommended by the Board of Directors after the end of the reporting period but before the financial statements were approved for issue were recognised in the financial statements as a liability. Under Ind AS, such dividends together with dividend distribution tax are recognised when approved by the members in the General Meeting.

7. Expected Credit Loss:Under Ind AS, expected life time credit provision is made on trade receivables. Under previous GAAP, the provision for doubtful debts was made using ageing analysis and an individual assessment of recoverability.

8. Deferred Tax -The additional Deferred Tax liability / Asset has also been recognised due to different accounting treatment in respect of certain items as per Ind AS at the tax rate at which they are expected to be reversed.

9. Actuarial Gain/Loss -Under Ind AS, re-measurements, i.e. actuarial gains and losses included in the net gratuity expense on the net defined liability are recognised in other comprehensive income instead of profit or loss.

10. Other Comprehensive Income- Under Ind AS, other comprehensive income adjustments are on account of actuarial gain/ loss on defined benefit plan - gratuity, net of tax effect.

11. Under previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products includes excise duty. The corresponding excise duty expense is presented separately on the face of the Statement of profit and loss.

12. Dismantling Provision: The Company has availed the exemption for dismantling liability as at the date of transition and accordingly measured the liability as at the date of transition which is not significant & material, hence not considered.

13. Estimates: Upon an assessment of the estimates made under Previous GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where revision in estimates was necessitated as required by Ind AS. The estimates used by the Company to present the amounts in accordance with Ind AS reflect conditions existing as at 1st April, 2016, the date of transition to Ind AS and as at 31st March, 2017 and 31st March, 2018.

14. There were no significant reconciliation items between cash flows prepared under Indian GAAP and those prepared under Ind-AS.

Mar 31, 2016

1. The company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares shall be entitled to receive remaining assets of the company, after adjustment of all the preferential payments. The Distribution will be made in the proportion of holding of equity shares. The Dividend proposed (if any) by the board is subject to approval of shareholders in the following annual general meeting.

* Term Loan represents loans taken for acquiring respective assets (vehicle and equipments) from Banks and NBFCs ranging interest from 12%-15% p.a. ,with maturity period over one year and are secured by hypothecation of the respective assets

** Loan from related parties consisting of interest free as well as interest bearing loans .

* Working capital loan is secured by way of charge over factory land at Sohna , hypothecation of plant and machinery(except the machinery for which specific charge have been created) , inventory and Receivables .

** Refer Note 3 for disclosure

*The Company has not received the required information from suppliers requiring their status under the Micro Small and Medium Enterprises Development Act 2006. Hence disclosures if any relating to amounts unpaid at the yearend together with interest paid/payable as required under the Act has not been made

* The company made investments in National Saving Certificates(NSC) i.e. 2 Certificates of Rs 25000/ each in the name of Managing Director of the company and the same has been pledged with sales tax authority at Rudrapur(Uttaranchal) on behalf of the company. The interest accrued on such investment will be accounted for on maturity.

Previous Year figures given in bracket / negative balance.

NOTE 1

Trade Receivables/ Payables are subject to confirmation. The Management does not expect any material differences effecting financial statements of the period

NOTE 2

The company''s manufacturing units/ undertakings are situated in tax exemption zone and are entitled tax benefits under the Income Tax Act.

NOTE 3

All the figures have been rounded off to the nearest rupee

NOTE 4

Figures for the previous year have been regrouped /rearranged wherever considered necessary to confirm to the year''s classification.

Mar 31, 2015

1. The company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company , the holders of the equity shares shall be entitled to receive remaining assets of the company, after adjustment of all the preferential payments. The Distribution will be made in the proportion of holding of equity shares. The Divendend proposed (if any) by the board is subject to approval of shareholders in the following Annual General Meeting.

2. Term Loan represents loans taken for acquiring respective assets (vehicle and equipments) from Banks and NBFCs ranging interest from 12%-15% p.a. ,with maturity period over one year and are secured by hypothecation of the respective assets ** Loan from related parties consisting of interest free as well as interest bearing loans.

4. All loans are gauranteed by Directors personally

5. including Rs. 20,10,361/-related to chits withdrawn repayment due after one year, estimated based on past experience

6.There are no Micro, Small and Medium Enterprises to which the Company owes dues as at 31st March 2015. This information, as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. The company made investments in National Saving Certificates(NSC) i.e. 2 Certificates of Rs 25000/ each in the name of Managing Director of the company and the same has been pledged with sales tax authority at Rudrapur(Uttaranchal) on behalf of the company. The interest accrued on such investment will be accounted for on maturity.

For the year For the year ended ended Particulars 31-03-2015 31-03-2014 (Rs.) ( Rs. )

8. Contingent liabilities and commitments (to the extent not provided for)

i) Contingent Liabilities

Claims against the company not acknowledged as debt

Excise Duty claim (with penalty) - 2,744,828

FERA Case Pending At Tribunal - 1,500,000

Total - 4,244,828

(ii) Commitments

Estimated amount of contracts remaining to be executed on

capital account and not provided for 17,750,000 17,984,149

Total 17,750,000 22,228,977

9. Disclosure under Accounting Standard 15 (Revised): Employees Benefits Employee Benefits

The Company has provided long-term employee benefits on the basis of actuarial valuation done as per projected unit credit method.

10. Defined Benefit Plans:

The Gratuity and Leave encashment liability of the Company is Non-funded. Hence reconciliation of fair value of plan assets and obligations are not required.

11. Related Party Disclosures

During the year, the company entered into transactions with related parties. List of related parties along with nature and value of transactions and balances as at 31st March 2015 are presented below:

Name of Related Parties*

Key Management Personnel(KMP) Mr. K.S. Rao (Managing Director)

Mr. K.Satish Rao (Whole time Director)

Relatives of Key Management Personnel Mrs. K. Pratibha Rao (Wife of MD)

Enterprise over which KMP and their 1) Innovative Pet Containers Limited relatives are able to exercise significant influence 2) Innovative Datamatics Limited

3) Innovative Container services Private Limited

*(as identified by the management)

Trade Receivables/ Payables are subject to confirmation. The Management does not expect any material differences effecting financial statements of the period.

12. During the previous year Company has acquired 7,91,809 equity shares in Jauss Polymers Limited, a company listed at Bombay Stock exchange. The trading in share of such company was suspended, hence no market value is available.

13. Till 31st March 2014, company was accounting loss on chit in the year in which chit was closed. Form the year 2013-14 company changed its policy and made provision for financial costs on existing chits that accrued till March 31, 2014 on the basis of expected cash outflow during the tenure of chits. The impact of change in this accounting policy was Rs. 53,44,464 which was and disclosed under exceptional items in the statement of Profit & Loss for the year ended March 31,2014.In the current year same policy continue, hence no impact on statement of Profit & Loss.

14. The company's manufacturing units/ undertakings are situated in tax exemption zone and are entitled for 100% tax benefits u/s 80-IC/ 80IB of the Income Tax Act for 5 year to 10 years ( at different units). The management is of the view that all timing differences shall be reversed/ adjusted within tax holiday period. Hence no deferred tax due to timing difference has been recognized. This Tax exepmtion U/S 80IC of the Income TAx Act for the Rudrapur Unit is available till March 31, 2017.

15. The Company has applied for Capital Subsidy of Rs. 1,35,98,000/- ( approx.) for its Unit at Guwahati. The same is under consideration by the appropriate authorities. The same shall be accounted for in accordance with Accounting Standard -12

16. The exceptional items given in Note No- 25 represents the following

a. Rs. 83 Lacs recoverable from a company whose unit was taken over under slump purchase agreement in year 2012 as the liability exceeded the assets, however as the same is not recoverable the amount has been written off.

b. As a conservative accounting practice the company has provided for the demand and the interest of Rs.53 lacs against pending legal cases. The same was disclosed under contingent liability in earlier years.

17. All the figures have been rounded off to the nearest rupee

18. Figures for the previous year have been regrouped /rearranged wherever considered necessary to confirm to the year's classification.

19. Other additional information are either nil or not applicable.

Mar 31, 2014

1. The company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares shall be entitled to receive remaining assets of the company, after adjustment of all preferential payments.The distribution will be made in the proportion of holding of equity shares. The dividend proposed (if any) by the board is subject to approval by the shareholders in the following Annual General meeting.

1. Term Loan represents loans taken for acquiring vehicles from Banks / NBFCs ranging from 12%-15% pa ,with maturity period one to three years and are secured by hypothecation of the respective vehicle financed.

2. Directors have given personal guarantee against various loans taken by the company whose outstanding amount as on 31 March 2014 was Rs. 53,29,716.

3. Equipment loan carry interest rate of 15 - 18% p.a. And are repayable in monthly installments over 36 months. This loan is secured by way of charge over certain fixed assets situated at Guwahati plant. Managing director has given personal guarantee against this loan.

4. Loan from Directors/related parties are consisting of interest free as well as interest bearing loans.

''Working capital loan is secured by way of charge over factory land at Sohna, hypothecation of plant and machinery (excluding vehicles) at Rudrapur plant and all stocks and book debts of the company.

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

NOTE-2

The company made investments in National Saving Certificates(NSC) i.e. 2 Certificates of Rs 25000/ each in the name of Managing Director of the company and the same has been pledged with sales tax authority at Rudrapur(Uttaranchal) on behalf of the company. The interest accrued on such investment will be accounted for on maturity.

NOTE 3

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities -

Claims against the company not acknowledged - as debt

Excise Duty claim ( with penalty) 2,744,828 2,744,828

FERA case pending at Tribunal 1,500,000 1,500,000

Total 4,244,828 4,244,828

(ii) Commitments

Estimated amount of contracts remaining to be executed

on capital account and not provided for 17,984,149 6,904,735

17,984,149 6,904,735

NOTE 4

Disclosure under Accounting Standard 15 (Revised): Employees Benefits

The Company has provided long-term employee benefits on the basis of actuarial valuation done as per projected unit credit method.

A. Defined Benefit Plans:

The Gratuity and Leave encashment liability of the Company is Non-funded. Hence reconciliation of fair value of plan assets and obligations are not required.

NOTE 5

Trade Receivables/ Payables are subject to confirmation. The Management does not expect any material differences effecting financial statements of the period

Note 6

During the year the company has acquired 791,809 equity shares in Jauss Polymers Ltd , a company listed at Bombay Stock exchange. The trading in shares of such company is suspended hence no market value is available for such shares. In view of long term investment in the company the management has not considered any diminition in value of shares and valued investment at cost.

NOTE 7

Till last year the company was accounting loss on chit in the year in which chit was closed. From the current year the Company has changed its policy and made provision for financial costs on existing chits that accrued till 31st March 2014 on the basis of expected cash outflow during the tenure of chits. The impact of change in this accounting policy is Rs.53,44,464 which has been classified and disclosed under Exceptional Items in the Statement of Profit and Loss of current year.

NOTE 8

During the year company has changed its accounting policy of depreciation from straight line method to written down value method for Mould , Building and Electric Installation with effect from capitalisation date of assets. Difference in accumulated depreciation as on 31st March''2013 due to change in policy amounting to Rs.153,73,780 /- has been charged to current year Statement of Profit and Loss as exceptional item . Further , due to change in depreciation policy current year depreciation and amortization is higher by Rs.61,00,713 Had the earlier policy of depreciation been followed, the current year profit before tax would had been higher by Rs 92,73,067/-.

NOTE 9

The company''s manufacturing units/ undertakings are situated in tax exemption zone and are entitled for 100% tax benefits u/s 80-IC of the Income Tax Act for 5 year to 10 years ( at different units). The management is of the view that all substantial all timing differences shall be reversed/ adjusted within tax holiday period. Hence no deferred tax due to timing difference has been recognized.

NOTE 10

All the figures have been rounded off to the nearest rupee

NOTE 11

Figures for the previous year have been regrouped /rearranged wherever considered necessary to confirm to the year''s classification.

NOTE 12

Other additional information are either nil or not applicable.

Mar 31, 2013

NOTE 1

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities -

Claims against the company not acknowledged as debt -

Excise Duty claim (with penalty) 2,744,828 942,750

FERA case pending at TRIBUNAL 1,500,000 1,500,000

Total 4,244,828 2,442,750

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for 10,568,158 13,362,500

(iii) Claim not acknowledged as debt 212,751 -

NOTE 2

Disclosure under Accounting Standard 15 (Revised): Employees Benefits

Employee Benefits

The Company has provided long-term employee benefits on the basis of actuarial valuation done as per projected unit credit method.

NOTE 3

Trade Receivables / Payables are subject to confirmation. The Management does not expect any material differences effecting financial statements of the period.

NOTE 4

The accounts for the period have been preapred for 12 months ended on 31st March, 2013 which are nor comparable with the previous period of 11 months period ended on 31st March, 2012.

NOTE 5

Loss on Chit is accounted for in year chit is closed. Accordingly, the loss for the current period for NIL- (Previous Period Rs. 739,600/-).

Balance of chits are subject to confirmation.

During the year company has not provided loss on running chit fund schemes, as the amount of loss is undetermined due to the nature of chit fund operation and the company has been following the policy of accounting chit loss as the chit is closed.

NOTE 6

During the year company has changed its accounting policy of depreciation from straight line method to written down value method with effect from 1st April, 2012 for Plant & Machinery only. Difference in accumulated depreciation as on 31st March, 2012 due to change in policy in related to existing assets amounting to Rs. 356,97,561/- has been charged to Statement of Profit and Loss as exceptional item. Further, due to change in depreciation policy current year expenses under the head ''Depreciation and Amortization'' is higher by Rs. 10,43,308/-. Had the earlier policy of depreciation been followed, the current year profit before tax would had been higher by Rs. 367,40,869/-.

NOTE 7

The company''s manufacturing units / undertakings are situated in tax exemption zone and are entitled for 100% tax benefits u/s 80-IC / 80 - IE of the Income Tax Act for 5 year to 10 years (at different units). The management is of the view that all timing differences shall be reversed / adjusted within tax holiday period. Hence no deferred tax liability due to timing difference has been recognized.

NOTE 8

The company has not provided excise duty on closing stock of finished goods considerinmg it immaterial. Same is not having any impact on financial perforamce and state of afffairs.

NOTE 9

All the figures have been rounded off to the nearest rupee

NOTE 10

Figures for the previous year have been regrouped / rearranged whreever considered necessary to confirm to the year''s classification.

Mar 31, 2012

1) The company has only one class of equity shares. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares shall be entitled to receive remaining assets of the company, after adjustment of all preferential payments. The distribution will be made in the proportion of holding of equity shares. The dividend proposed (if any) by the board is subject to approval by the shareholders in the following Annual General meeting.

2) Pursuant to the special resolutions passed in annual general meeting held on 28th Sep, 2011:-

a) Company has increased authorized share capital from Rs. 10 Crores to Rs. 13 Crores

b) Company has subdivided each equity share of Rs. 10/- per share into10 equity shares of Rs. 1/- each. Consequently number of shares have increased by ten times and face value reduced by ten times.

1. Term Loan represents loans taken for acquiring vehicles from Banks and NBFCs at interest rate ranging from 12%-15% pa ,with maturity period over one year and are secured by hypothecation of vehicles. These loans are repayable in monthly installments. Loan Repayable within 12 months have been considered as current liabilitiy.

2. Loan from related parties :-

There is no defined repayment period , however all the parties have given undertaking that the loan amount will not be called in next 12 months.

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

NOTE-1 (1)

The company made an investment in National Saving Certificates(NSC) ie 2 Certificates of Rs. 25000/ each in the name of Managing Director of the company and the same has been pledged with sales tax authority at Rudrapur (Uttaranchal) on behalf of the company. The interest accrued on such investment will be accounted for on maturity.

NOTE 2

Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent Liabilities -

(a) Claims against the company not acknowledged as debt - 214,000

(b) Excise Duty Claim 942,750 942,750

(c) FERA case pending at TRIBUNAL 1,500,000 1,500,000

(ii) Capital Commitments

(a) Estimated amount of contracts remaining to be executed on

capital account and not provided for net of advances if any. 24,279,500 6,508,000

A. Defined Benefit Plans:

The Gratuity and Leave encashment liability of the Company is Non-funded. Hence reconciliation of fair value of plan assets and obligation are not required.

a) EPS for the current financial period is for 11 months (previous period 7 months) and not annualized.

b) Previous period EPS have been adjusted to give effect of splitting of shares from face value of Rs. 10 to Rs. 1 per share by restating previous period oustanding no of shares.

NOTE 3

RELATED PARTY DISCLOSURES

During the year, the company entered into transactions with related parties. List of related parties along with nature and value of transactions and balances as at 31st March, 2012 are presented below:

NOTE 4

The company's manufacture facility is located in excise exempted industrial area. During the period no manufacuring was carried out at any other manufacturing facility, hence neither excise duty on manufacturing has been levied nor provided on closing stock.

NOTE 5

Loss on Chit is accounting for in the year in which chit is closed. The loss for the current period for Rs. 7,39,600 (Previous Period Rs. Nil). During current period the company has taken chits of Rs. 1,23,50,000.

NOTE 6

The company is liable to pay MAT under section 115-JB of IT Act. Current year tax-MAT has been provided and MAT credit has been recognised in the books.

NOTE 7

All the figures have been rounded off to the nearest rupee

NOTE 8

Figures for the previous year have been regrouped /rearranged wherever considered necessary to confirm to the year's classification.

Sep 30, 2010

1. The company was declared sick on 14.01.06 by order of BIFR, Bench-I, New Delhi and had furnished a detailed Rehabilitation Scheme to Operating Agency i.e. Punjab National Bank. Subsequently revised reschedule of OTS amount was submitted to Haryana State Industrial Development Corporation and Punjab National Bank which has been approved by them.

2. Company entered in one time settlement (OTS) of the loans taken from Punjab National Bank (PNB) vide letter dated 28.02.07, subsequently revised vide letter dated 28.01.2009 and 08.06.2009 for a sum of Rs.525 lacs and Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) vide letter dated 15.10.08 for Rs 151.69 lacs subsequently revised vide letter dated 22.04.09 and 12.05.09 on complying with the certain terms and conditions. Loan outstanding for payment under OTS as on 30th September 2010 is Rs.131.93 lacs to PNB and Rs.29.47 lacs to HSIIDC.

3. Interest accrued and due to PNB includes Rs.1225.48 lacs to be waived on successful compliance of the terms and conditions of OTS, have not been reversed on account of prudence. The Company is paying interest only on OTS amount finalized by the bank.

4. As per the BIFR Order dated July 19, 2010, the company has reduced its existed share capital by 90% and then consolidated every ten equity shares of Rs. 1/- each into one equity share of Rs. 10/- each fully paid up of in terms of Sec 18 (2) (f) of the SICA. Before this reduction, the number of shares were 68,65,000 and afterwards the number of shares are 6,86,500.

5. Interest accrued and due ( till the date of OTS ) to HSIIDC Rs. 540.03 lacs has been written back in the books on successful compliance of the terms and conditions of OTS. Write back of interest liability included in other income. As the dues of HSIDC were paid on 22nd Nov2010 and received no dues confirmation.

6. Pursuant to the BIFR order dated 19th July2010 the company has received Rs.150 lacs as share application money from director pending for allotment into equity shares of the company at par .

7. Pursuant to the BIFR order dated 19th July2010 the promoters and related parties have brought in Rs.249 lacs to finance the cost of scheme or any short fall in cash generation to meet the repayment obligation to Financial Institutions / Banks. This amount has been included under unsecured loans and shall be adjusted into equity on subsequent date as per consent of the promoter.

8. Difference of Rs.327,500 /- of earlier years in share suspense account , being reconciliation of allotment money has been reconciled during the year.

9. Contingent Liabilities

The contingent liabilities as on 30th September, 2010 are Rs 57.76 lacs (previous year Rs.256.11 lacs). This consists of the following:-

a) Excise Duty claims - Rs.15.43 lacs (Previous year Rs.79.52 lacs)

b) Contingent liability of Rs 25.24 lacs (Previous year Rs.25.24 lacs) against demand by Haryana Government for non- compliance by the company with state capital subsidy scheme

c) Demand under FERA - Rs.15.00 lacs (Previous year Rs. 150.00 lacs).

d) Other claims not acknowledged as debt - Rs. 2.09 lacs (Rs. 1.35 lacs)

10. Capital Commitment

Estimated amount of Contracts remaining to be executed on Capital Accounts (net of advances) and not provided for Rs. 365.40 lacs (Previous Year Rs. 25.79 lacs).

11. Provision for Excise duty on closing finished goods has not been made on the goods manufactured in the plant where Excise Duty has been exempted.

12. Excise duty on sale of finished goods has not been charged where excise duty is exempted due to establishment of plant in backward area. Such exempted sales comprises of 99.49% (Previous Year 99.5%) of total sales. Similarly, excise duty paid on procurement of Raw Materials and other capital goods are considered as part of acquisition cost wherever not recoverable from authorities.

13. Closing Balance of Secured Loan form Punjab National Bank is subject to confirmation.

14. In view of the management, all current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

15. The company made an investment in National Saving Certificate (NSC) in the name of Managing Director of the company and the same were pledged with Sales Tax Authority at Rudrapur (Uttaranchal) on behalf of the company.

16. Managerial Remuneration paid / payable for the period ended 30.09.10 to Managing Director of the Company is in accordance with Approval letter No.1/456/2005-CL-VII dated 20.01.2006 of the Central Government under Section 269, 198(4)/309(3) & 637AA of the Companies Act, 1956 and pursuant to special Resolution passed by the Shareholders at their Extra ordinary General Meeting held on 01-09-2010.

17. Segment Information

Company discontinued its Toy Trading operations during 2006-07 having different risks and rewards as compared to the business of manufacturing Pet bottles / Jars and Caps for Pet bottles / Jars for domestic markets. Debtors and creditors outstanding relating to the discontinued segment does not qualify to be disclosed as per the criteria of Reportable segment as per the Accounting Standard on Segment Reporting (AS-17). Hence Disclosures have not been made.

Further, the companys chit fund business also not qualified to be reported as a reportable segment.

18. Related Party Transactions *

During the year, the company entered into transactions with related parties. List of related parties along with nature and volume of transactions and balances as at 30th September, 2010 are presented below:

1. Key Management Personnel(KMP) Mr. K.S. Rao (Managing Director)

2. Relatives of Key Management Personnel Mrs. K. Pratibha Rao (Wife ofMD)

Mr. K.Satish Rao (Son of MD)

3. Enterprise over which KMP and their relatives Ganapati Polymers Limited are able to exercise significant influence Innovative Pet Containers Limited

Innovative Datamatics Limited

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

20. Bank accounts include balance of one bank account which is inoperative and subject to confirmation.

21. Debtors amounting to Rs. 670.30 Lacs ( gross) and creditors amounting to Rs.464.66 Lacs are subject to the confirmation. The management does not expect any material difference affecting the financial statement for the period.

22. Loss on chit is accounted for in the year chit is closed. The loss for the current period for Rs. NIL (Previous year Rs.1.96 Lacs). During current period , company has taken chits of Rs.67.80 Lacs included under unsecured loan. Balance of chits are subject to confirmation.

23. Current Year figures are for 18 Months, hence not comparable with Previous Year 12 Months figure.

24. All the figures have been rounded off to the nearest Rupee.

25. Figures for the previous year have been regrouped wherever considered necessary to conform to this years classification.

As per our report of even date attached

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