Notes to Accounts of Kkalpana lndustries (India) Ltd.

Mar 31, 2025

3.16 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or
all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the
reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss
net of any reimbursement.

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

Contingent Liabilities and Assets

Contingent Liabilities are not recognised but are disclosed in the notes. A disclosure for a contingent liability is made
where there is a possible obligation arising out of past event, the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company
or a present obligation arising out of past event where it is either not probable that an outflow of resources will be
required to settle or a reliable estimate of the amount cannot be made. Contingent Assets are not recognised but
disclosed in the financial statements when economic inflow is probable.

3.17 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period after deducting any attributable
tax thereto for the period by the weighted average number of equity shares outstanding during the period. For the
purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of
all dilutive potential equity shares.

3.18 Current and Non-current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non current classification.

An asset is current when:

- It is expected to be realised or intended to be sold or consumed in normal operating cycle (twelve months),

- It is held primarily for the purpose of trading,

- It is expected to be realised within twelve months after the reporting period,

- It is cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve
months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle (twelve months),

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period,

Or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting
period.

All other liabilities are classified as non-current.

3.19 Business Combination

Business combinations, if any, are accounted for using the acquisition accounting method as at the date of the
acquisition, which is the date at which control is transferred to the Company. The consideration transferred in the
acquisition and the identifiable assets acquired and liabilities assumed are recognised at fair values on their
acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration
transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net
identifiable assets acquired and liabilities assumed. If the Goodwill computed as per IND AS 103 is negative, the
acquirer needs to reassess the identification and measurement of the acquiree''s identifiable assets, liabilities and
contingent liabilities and the measurement of the cost of combination. If negative goodwill remains, this is
recognised immediately in OCI and accumulated in equity as Capital Reserve. The Company recognises any
non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities
assumed. The Company recognises any non-controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value or at the non-controlling interest''s proportionate share of the
acquired entity''s net identifiable assets. Consideration transferred does not include amounts related to settlement of
pre-existing relationships. Such amounts are recognised in the Statement of Profit and Loss.

Transaction costs are expensed as incurred, other than those incurred in relation to the issue of debt or equity
securities. Any contingent consideration payable is measured at fair value at the acquisition date. Subsequent
changes in the fair value of contingent consideration are recognised in the statement of Profit and Loss.

If there is an acquisition of an asset or a group of assets that does not constitute a business.In such cases the Company
shall identify and recognise the individual identifiable assets acquired (including those assets that meet the definition
of, and recognition criteria for, intangible assets in Ind AS 38, Intangible Assets) and liabilities assumed. The cost of the
group shall be allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at
the date of purchase. Such a transaction or event does not give rise to goodwill.

(b) Defined benefit plan:

Gratuity

The Employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance
Corporation of India. The liabilities with respect to Gratuity Plan are determined by actuarial valuation on projected unit credit
method on the balance sheet date, based upon which the Company contributes to the Group Gratuity Scheme. The difference, if
any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with Life Insurance
Corporation of India, is provided for as assets/ (liability) in the books. Actuarial gains/ (losses) for defined benefit plans are
recognised in full and are immediately taken to the statement of profit and loss and Other Comprehensive Income accordingly
as per Actuarial Valuation Report. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount equivalent to 15 to 30 days'' salary for each completed year of
service. Vesting occurs upon completion of five continuous years of service in accordance with Indian law. The gratuity fund is
separately administered by a Gratuity Fund Trust.

43 FAIR VALUE MEASUREMENT

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

(1) Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables , other current liabilities,
short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short-term
maturities of these instruments.

(2) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameter such as interest
rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the
expected losses of these receivables.

44 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables and
advances from customers. The main purpose of these financial liabilities is to finance the Company''s operations, projects under
implementation and to provide guarantees to support its operations. The Company''s principal financial assets include Investment,
loans and advances, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of
how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience
and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes to be undertaken. The Board of
Directors reviews and finalises policies for managing each of these risks, which are summarised 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 Commodity price risk. Financial instruments
affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings and
derivative financial instruments.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the
entire process of market risk management. The treasury department recommends risk management objectives and policies, which
are approved by Senior Management and the Audit Committee. The activities of this department include management of cash
resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with
market risk limits and policies.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses to manage
the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of
fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The Company is not exposed to interest rate risk as at the respective reporting date.

(ii) 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''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s
operating and financing activities. The Company manages its foreign currency risk by hedging transactions that are expected to
realise in future.

3. Well planned procurement & inventory strategy and

4. Prudent hedging policy on foreign currency exposure

Risk committee of the Company comprising members from Board of Directors and operations has developed and enacted a risk
management strategy regarding commodity Price risk and its mitigation."

B. Credit Risk

Credit risk is the risk that a counterpart will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to
suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating
to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is
performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several
jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the due date of payment.(Refer Note no. 13)

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance
with the Company''s policy. Credit limits of all authorities are reviewed by the Management on regular basis. All balances with banks
and financial institutions is subject to low credit risk due to good credit ratings assigned to these entities.

C. Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company''s objective is to maintain a
balance between continuity of funding and flexibility through the use of cash credit, letter of credit, factoring,bill discounting and
working capital limits.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual payments.

45 CAPITAL MANAGEMENT

A. For the purpose of the Company''s capital management, equity includes issued equity capital, securities premium and all other
equity reserves attributable to the equity share holders, including capital reserve and net debt includes interest bearing loans and
borrowings and finance lease liability except cash and cash equivalents. The primary objective of the Company''s capital
management is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business
and provide adequate return to shareholders through continuing growth.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. The funding requirement is met through a mixture of equity, internal accruals, long term
borrowings and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total
capital plus net debt divided by total shareholders fund.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets
financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

52 LEASES

"The Company''s lease asset classes primarily consist of leases for buildings, machinery and warehouses.

• The company didn''t recognized Right to Use and Lease liabilities for lease for which the lease terms pertaining to the
noncancellable period ends within 12 months on the date of initial transition and low value assets.

• The Company excluded initial direct cost from measurement of the Right to Use assets at the date of initial application.

• The Company uses hindsight in determining the lease term where the contract contains options to extend or terminate the lease.
Hence, the Company has recognised the lease payments associated with those leases as an expense on a straight line basis over the
lease term. Lease liabilities were measured at the present value of remaining lease payments, discounted at the Company''s actuarial
discounting rate. Right to Use is measured at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued
lease payments."

Definations

(a) Earning available for debt service = Net Profit before taxes Non-cash operating expenses like depreciation and other
amortisations Interest other adjustments like loss on sale of Fixed assets etc.

(b) Debt service = Interest & Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2 (f) Net credit purchases
= Net credit purchases consist of gross credit purchases minus purchase return

(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(h) Average Working capital = Current assets - Current liabilities.

(i) Earning before interest and taxes = Profit before exeptional items and tax Finance costs - Other Income

(j) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

b) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for
holding any Benami Property.

c) The company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

d) The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the
balance sheet date.

e) The Company has not advanced any fund to any person or entity, including foreign entities (Funding Party) with the
understanding (whether recorded in writing or otherwise) that the person or entity 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 Benificiary); or

ii) provide any guarantee, security or the like on behalf of the Company.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Company (Ultimate Benificiaries); or

b) provide any guarantee, security or the like on behalf of the Company.

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

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

i) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.

54 AUDIT TRAIL

Kkalpana Industries (India) Ltd. (KIIL) uses SAP-S4 HANA as the accounting software. SAP ensures an audit trail, providing standard
functionality and logging in all changed data in the system. This functionality and audit trail feature in SAP has been operational
throughout the year for all relevant transactions recorded through the application at KIIL.

At KIIL, accounting documents are used to record all business transactions - posted documents are stored in SAP for every
transaction and a financial document once posted cannot be deleted or changed for data points impacting financials. The SAP
environment at KIIL is appropriately governed and only authorised users can make postings in SAP, while interacting with the
system through the application layer. Normal/regular users are not granted nor have direct SAP-DB (database) or super user level
access which would allow them to make any changes to financial documents directly which have already been posted through the
application.

To operate the SAP-application and the SAP-DB, the system necessarily requires a set of super-users to have DB-level accesses. These
super-users are obligated to perform system related tasks. They are not allowed to carry out any direct changes/edits to financial

transactions in the SAP-DB, which if carried out is ill-legal. In the event of an unauthorised change by a super user specifically, these
can be detected through an investigative approach and/or using services provided by SAP as part of their financial data quality
check service, which validates the consistency of financials based on the request of the client. Therefore, while the SAP-DB at the
moment does not have the concurrent real time audit trail feature in view of its infeasibility, the tracking of changes can be done
through a focused enquiry process.

55 CHANGES IN ACCOUNTING STANDARDS AND RECENT ACCOUNTING PRONOUNCEMENTS

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has not notified any new
standards or amendments to the existing standards applicable to the Company.

56 Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.

For and on behalf of Board of Directors

For B. Chakrabarti & Associates

Chartered Accountants

Firm Registration No:305048E ^{Narrindra Suranna Pranab Ranjan Mukherjee}

(DIN: 00060127) (DIN: 00240758)

Chairman and Managing Director Whole Time Director

Dipankar Chakravarti

Partner

M_emb_ership N_o.053402 Swati Bhansali Indar Chand Dakalia

D_at_e : 16^th M_ay, 2025 (Membership No. ACS 52755) Chief Financial Officer

Place : Kolkata Company Secretary

---

Mar 31, 2024

(b) Terms/ Rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs. 2 per share. Each equity shareholder is entitled to one vote per share. The Company had declared and paid dividends in Indian rupee.

In event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in propotion of their shareholding.

(e) The Company for the Period of five year immediately preceding the reporting date has not:

(i) Alloted any class of shares as fully paid pursuant to contract(s) without payment being received in cash.

(ii) Alloted fully paid shares by way of bonus shares.

(iii) Bought Back of any class of shares

36	OTHER NOTES FORMING PART OF THE FINANCIAL STATEMENTS		(Rs. in Lacs)
A	Contingent Liabilities Not Provided for:-	As at 31st March 2024	As at 31st March 2023
	(a) Claims against the Company not acknowledged as debts - Demand raised by following authorities in dispute: (i) Income tax matters	1,001.21	1,243.23
B	Bank Gurantee	167.16	234.43
C	Capital Commitments
	Estimated Value of contracts in Capital account remaining to be excecuted and not provided for (Net of advances)	0.52	-
D	Other Commitments Letter of Credit	314.58	570.94

37 DETAILS OF LOANS GIVEN, INVESTMENTS MADE AND GUARANTEE GIVEN COVERED U/S 186(4) OF THE COMPANIES ACT, 2013

A. Loan Given

(i) Subsidiary

There is no Loan given by the Company during the year.

B. Investment Made

There are no investments made by the Company other than those stated under Note 9 in the financial statements.

C. Securities Given

There is no security given during the year.

38 DISCLOSURE ON CORPORATE SOCIAL RESPONSIBILITY EXPENSES

Provisions related to Corporate Social responsibility u/s 135 of Companies Act 2013 is not applicable to the company since it does not satisfy any of the following criteria in the preceding financial year: -

• Net worth > 500 Crore

• Turnover > 1000 Crore

• Net Profit > 5 Crore

(b) Defined benefit plan:

Gratuity

The Employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India. The liabilities with respect to Gratuity Plan are determined by actuarial valuation on projected unit credit method on the balance sheet date, based upon which the Company contributes to the Group Gratuity Scheme. The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with Life Insurance Corporation of India, is provided for as assets/ (liability) in the books. Actuarial gains/ (losses) for defined benefit plans are recognised in full and are immediately taken to the statement of profit and loss and Other Comprehensive Income accordingly as per Acturial Valuation Report.. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 to 30 days'' salary for each completed year of service. Vesting occurs upon completion of five continuous years of service in accordance with Indian law. The gratuity fund is separately administered by a Gratuity Fund Trust.

40 DISCLOSURES AS REQUIRED BY IND AS 108, OPERATING SEGMENTS

(a) Identification of Operating Segments:

The Company Operate in a Single Reportable Operating Segment i.e. reprocessed plastic compounds which have similar risk and returns and are of similar nature. No other operating segments have been aggregated to form the above reportable operating segments as per the criteria specified in the Ind AS.

(b) Business Segment wise revenue/results/assets/liabilities

Since there is Single Reportable Operating Segment hence disclosure of Operating Segment wise Assets,Liabilities, Revenue and Results are not applicable.

(d) The Company does not have material amount of tangible, intangible assets and non current operating assets located outside India.

(e) Product wise revenue from external customers has been detailed in Note no. 26.

(f) Revenue from top three customer is Rs. 3192.66 lacs (P.Y Rs. 24862.46 lacs from single customer) which is accounted for, on their individual capacity, more than 10% of the total revenue of the Company.

42 FAIR VALUE MEASUREMENT

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

(1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables , other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

(2) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameter such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

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

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

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

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

43 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables and advances from customers. The main purpose of these financial liabilities is to finance the Company''s operations, projects under implementation and to provide guarantees to support its operations. The Company''s principal financial assets include Investment, loans and advances, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes to be undertaken. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised 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 Commodity price risk. Financial instruments affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings and derivative financial instruments.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits and policies.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on the unhedged portion of loans and borrowings. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

(ii) 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''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating and financing activities. The Company manages its foreign currency risk by hedging transactions that are expected to realise in future.

(iii) Commodity price risk

"Principal Raw Material for Company''s products is variety of plastic polymers which are primarily Derivatives of Crude Oil. Company sources its raw material requirement from across the globe. Domestic market prices are also generally remains in sync with international market price scenario. Volatility in Crude Oil prices, Currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability of polymers for the Company. Company effectively manages with availability of material as well as price volatility through:

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy and

4. Prudent hedging policy on foreign currency exposure

Risk committee of the Company comprising members from Board of Directors and operations has developed and enacted a risk management strategy regarding commodity Price risk and its mitigation."

B. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the due date of payment.(Refer Note no. 11)

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Credit limits of all authorities are reviewed by the Management on regular basis. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned to these entities.

C. Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit, letter of credit, factoring,bill discounting and working capital limits.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual payments.

44 CAPITAL MANAGEMENT

A. For the purpose of the Company''s capital management, equity includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holders, including capital reserve and net debt includes interest bearing loans and borrowings except cash and cash equivalents. The primary objective of the Company''s capital management is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through a mixture of equity, internal accruals, long term borrowings and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

51 LEASES

Ministry of Corporate Affairs ("MCA") through Companies (Indian Accounting Standards) Amendment Rules, 2019 and Companies (Indian Accounting Standards) Second Amendment Rules, has notified Ind AS 116 Leases which replaces the existing lease standard, Ind AS 17 Leases and other interpretations. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. It introduces a single, on-balance sheet lease accounting model for lessees.

Effective April 1, 2019, the Company has adopted Ind AS 116 "Leases" using modified retrospective approach. The Company''s lease asset classes primarily consist of leases for buildings, machinery and warehouses. These leases were classified as "Cancellable Operating Leases" under Ind AS 17. On transition to Ind AS 116 "Leases", the Company has used following practical expedient, when applying Ind AS 116 to leases previously classified as operating leases under Ind AS 17.

• The company didn''t recognized Right to Use and Lease liabilities for lease for which the lease terms pertaining to the uncancellable period ends within 12 months on the date of initial transition and low value assets.

• The Company excluded initial direct cost from measurement of the Right to Use assets at the date of initial application.

• The Company uses hindsight in determining the lease term where the contract contains options to extend or terminate the lease.

Hence, the Company has recognised the lease payments associated with those leases as an expense on a straight line basis over the lease term. Lease liabilities were measured at the present value of remaining lease payments, discounted at the Company''s acturial discounting rate. Right to Use is measured at an amount equal to the lease liability adjusted by the amount of any prepaid or accrued lease payments.

b) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami Property.

c) The company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

d) The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

e) The Company has not advanced any fund to any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the person or entity 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 Benificiaries); or

ii) provide any guarantee, security or the like on behalf of the Company.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Benificiaries); or

b) provide any guarantee, security or the like on behalf of the Company.

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

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

i) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.

53 AUDIT TRAIL

Kkalpana Industries (India) Ltd. (KIIL) uses SAP-S4 HANA as the accounting software. SAP ensures an audit trail, providing standard functionality and logging in all changed data in the system. This functionality and audit trail feature in SAP has been operational throughout the year for all relevant transactions recorded through the application at KIIL.

At KIIL, accounting documents are used to record all business transactions - posted documents are stored in SAP for every transaction and a financial document once posted cannot be deleted or changed for data points impacting financials. The SAP environment at KIIL is appropriately governed and only authorised users can make postings in SAP, while interacting with the system through the application layer. Normal/regular users are not granted nor have direct SAP-DB (database) or super user level access which would allow them to make any changes to financial documents directly which have already been posted through the application.

To operate the SAP-application and the SAP-DB, the system necessarily requires a set of super-users to have DB-level accesses. These super-users are obligated to perform system related tasks. They are not allowed to carry out any direct changes/edits to financial transactions in the SAP-DB, which if carried out is ill-legal. In the event of an unauthorised change by a super user specifically, these can be detected through an investigative approach and/or using services provided by SAP as part of their financial data quality check service, which validates the consistency of financials based on the request of the client. Therefore, while the SAP-DB at the moment does not have the concurrent real time audit trail feature in view of its infeasibility, the tracking of changes can be done through a focused enquiry process.

54 Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.

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Mar 31, 2023

3.16 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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

Contingent Liabilities and Assets

Contingent Liabilities are not recognised but are disclosed in the notes. A disclosure for a contingent liability is made where there is a possible obligation arising out of past event, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation arising out of past event where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.Contingent Assets are not recognised but disclosed in the financial statements when economic inflow is probable.

3.17 Earnings per Share

Basic earnings per share is calculated by dividing the net profit or loss for the period after deducting any attributable tax thereto for the period by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

3.18 Current and Non-current Classification

The Company presents assets and liabilities in the balance sheet based on current/ non current classification.

An asset is current when:

- It is expected to be realised or intended to be sold or consumed in normal operating cycle (twelve months),

- It is held primarily for the purpose of trading,

- It is expected to be realised within twelve months after the reporting period,

- It is cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle (twelve months),

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period,

Or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

All other liabilities are classified as non-current.

3.19 Business Combination

Business combinations, if any, are accounted for using the acquisition accounting method as at the date of the acquisition, which is the date at which control is transferred to the Company. The consideration transferred in the acquisition and the identifiable assets acquired and liabilities assumed are recognised at fair values on their acquisition date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. If the Goodwill computed as per IND AS 103 is negative, the acquirer needs to reassess the identification and measurement of the acquiree''s identifiable assets, liabilities and contingent liabilities and the measurement of the cost of combination. If negative goodwill remains, this is recognised immediately in OCI and accumulated in equity as Capital Reserve. The Company recognises any noncontrolling interests, and any previous interest held, over the net identifiable assets acquired and liabilities assumed. The Company recognises any non-controlling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest''s proportionate share of the acquired entity''s net identifiable assets. Consideration transferred does not include amounts related to settlement of pre-existing relationships. Such amounts are recognised in the Statement of Profit and Loss.

Transaction costs are expensed as incurred, other than those incurred in relation to the issue of debt or equity securities. Any contingent consideration payable is measured at fair value at the acquisition date. Subsequent changes in the fair value of contingent consideration are recognised in the statement of Profit and Loss.

If there is an acquisition of an asset or a group of assets that does not constitute a business.In such cases the Company shall identify and recognise the individual identifiable assets acquired (including those assets that meet the definition of, and recognition criteria for, intangible assets in Ind AS 38, Intangible Assets) and liabilities assumed. The cost of the group shall be allocated to the individual identifiable assets and liabilities on the basis of their relative fair values at the date of purchase. Such a transaction or event does not give rise to goodwill.

(b) Defined benefit plan:

Gratuity

The Employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India. The liabilities with respect to Gratuity Plan are determined by actuarial valuation on projected unit credit method on the balance sheet date, based upon which the Company contributes to the Group Gratuity Scheme. The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with Life Insurance Corporation of India, is provided for as assets/ (liability) in the books. Actuarial gains/ (losses) for defined benefit plans are recognised in full and are immediately taken to the statement of profit and loss and Other Comprehensive Income accordingly as per Acturial Valuation Report.. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 to 30 days'' salary for each completed year of service . Vesting occurs upon completion of five continuous years of service in accordance with Indian law. The gratuity fund is separately administered by a Gratuity Fund Trust.

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

(1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables , other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

(2) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameter such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

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

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

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

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

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes to be undertaken. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised 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 Commodity price risk. Financial instruments affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings and derivative financial instruments.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits and policies.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

(in) Commodity price risk

Principal Raw Material for Company''s products is variety of plastic polymers which are primarily Derivatives of Crude Oil. Company sources its raw material requirement from across the globe. Domestic market prices are also generally remains in sync with international market price scenario. Volatility in Crude Oil prices, Currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability of polymers for the Company. Company effectively manages with availability of material as well as price volatility through:

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy and

4. Prudent hedging policy on foreign currency exposure

Risk committee of the Company comprising members from Board of Directors and operations has developed and enacted a risk management strategy regarding commodity Price risk and its mitigation.

B. Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the due date of payment.(Refer Note no. 13)

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Credit limits of all authorities are reviewed by the Management on regular basis. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned to these entities.

a) Pursuant to the Composite Scheme of Arrangement (''the scheme'') between Kkalpana Industries (India) Limited, the Company and their respective shareholders and creditors as approved by the Hon''ble National Law Company Tribunal (NCLT), Kolkata Bench, vide its order dated March 4, 2022, which became effective on April 1, 2022 on filing with the Registrar of Companies, all the assets and liabilities of the ''transferred business'' of Kkalpana Industries (India) Limited i.e. the Compounding Business units situated at Dhulagarh, Howrah(West Bengal), Daman(Dadra & Nagar Haveli and Daman & Diu), Dadra(Dadra & Nagar Haveli and Daman & Diu), Surangi(Dadra & Nagar Haveli and Daman & Diu), Vapi(Gujarat), Delhi(N.C.T. of Delhi) and Mumbai (Maharashtra) registered,marketing, branch and administrative office(s) located in India, have been transferred to and vested in the Company at their respective book values on a going concern basis with effect from the appointed date (i.e. April 1, 2021). Accordingly, the Scheme of Arrangement has been given effect to in these accounts for the year ended 31st March ,2022.

Definitions

(a) Earning available for debt service = Net Profit before taxes Non-cash operating expenses like depreciation and other amortisations Interest other adjustments like loss on sale of Fixed assets etc.

(b) Debt service = Interest & Lease Payments Principal Repayments

(c) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(d) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(e) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(f) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return

(g) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(h) Average Working capital = (Opening Current assets - Opening Current liabilities) (Closing Current assets - Closing Current liabilities)/2.

(i) Earning before interest and taxes = Profit before exeptional items and tax Finance costs - Other Income

(j) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

b) The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment received Indian Parliament approval and Presidential assent in September 2020. The Code has been published in the Gazette of India and subsequently on November 13, 2020 draft rules were published and invited for stakeholders'' suggestions. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

c) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami Property.

d) The company do not have any transactions with struck off companies under Section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

e) The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

f) The Company has not advanced any fund to any person or entity, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the person or entity 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 Benificiaries); or

ii) provide any guarantee, security or the like on behalf of the Company.

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

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Benificiaries); or

b) provide any guarantee, security or the like on behalf of the Company.

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

i) As at 31st March, 2023, the Register of charges of the company as available in records of Ministry of Corporate Affairs includes charge amount of Rs 10 Crore.

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

k) The company has not traded or invested in Crypto currency or Virtual currency during the financial year.

55 Indian Accounting Standards Standards notified but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31 2023 to amend the following Ind AS which are effective from from April 1,2023

a. Amendments to Ind AS 8: Definition of Accounting Estimates

b. Amendments to Ind AS 1: Disclosure of Accounting Policies

c. Amendments to Ind AS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction -Based on preliminary assessment, the Company is currently assessing the impact of the amendments.

56 Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.

For B. Chakrabarti & Associates For and on behalf of Board of Directors

Chartered Accountants

Firm Registration No:305048E

Narrindra Suranna Pranab Ranjan Mukherjee

(DIN: 00060127) (DIN: 00240758)

Dipankar Chakravarti Chairman and Managing Director Whole Time Director

Partner

Membership No.053402 Ankita Karnani Indar Chand Dakalia

Date : 19th May, 2023 (Membership No. ACS 33634) Chief Financial Officer

Place : Kolkata Company Secretary

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Mar 31, 2018

1. COMPANY INFORMATION

Kkalpana Industries (India) Limited (the Company) was incorporated in India on 03rd of September 1995. The Company is domiciled in India whose shares are listed on the Bombay Stock Exchange (BSE). The registered office is located at 2B Pretoria Street. Kolkata The Company is engaged in the manufacturing of Plastic Compounds. Plastic Processors and Exporters Pvt Limited is a subsidiary of the Company.

The financial statements of the Company for the year ended 31st March, 2018 were authorised for issue in accordance with a resolution of the Board of Directors as on 30.05.2018

2 Basis of Preparation of Financial Statements

2.1 Statement of Compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ''Ind AS'') as notified by Ministry of Corporate affairs pursuant to section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

These financial statements for the year ended 31st March, 2018 are the first Company has prepared under Ind AS. For all periods upto and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the Accounting Standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as ''Previous GAAP'') used for its statutory reporting requirement in India immediately before adopting Ind AS. The financial statements for the year ended 31st March, 2017 and the opening Balance Sheet as at 1st April, 2016 have been restated in accordance with Ind AS for comparative information.

Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company''s Balance Sheet, Statement of Profit and Loss and Statement of Cash Flows are provided in Note no. 52 of the financial statements.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the ''date of transition to Ind AS''

All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.

The financial statements are presented in Indian Rupees (Rs.), which is the Company''s functional currency and transactions and balances with values below the rounding off norm adopted by the Company have been reflected as "0" in the relevant notes in these financial statements.

2.2 Basis of Measurement

The financial statements have been prepared on a historical cost basis (which includes deemed cost as per Ind AS 101), except for the following assets and liabilities which have been measured at fair value:

(i) Derivative financial instruments

(ii) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments).

(iii) Defined benefits plans - Plan assets measured at fair value

2.3 FIRST TIME ADOPTION OF IND AS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from 1st April, 2017 with a transition date of 1st April, 2016. These financial statements for the year ended 31st March, 2018 are the first financial statements the Company has prepared under Ind AS. For all periods upto and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with the Accounting Standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Previous GAAP'').

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented, Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended 31st March, 2018, together with the comparative information as at and for the year ended 31st March, 2017 and the opening Ind AS Balance Sheet as at 1st April, 2016, the date of transition to Ind AS. The figures for the previous periods and for the year ended 31st March, 2016 have been restated, regrouped and reclassified, wherever required to comply with Ind-AS and Schedule III to the Companies Act, 2013 and to make them comparable.

In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). These notes explain the adjustments made by the Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

TA! Exemptions from requirement of Other IND AS

A-1 1 Deemed cost for Property, Plant and Equipment, Investment Properties and Intangible Assets

The Company has elected to measure all its Property, Plant and Equipment, Investment Properties and Intangible Assets at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

TA-2 1 Business Combination

The Company has not elected to apply IND AS 103- Business Combination , retrospectively to past business combination that are occurred before the date of transition to IND AS.

TA-3 1 Lease

The Company has assessed the classification of each element as finance or operating lease at the date of transition to Ind AS on the basis of the facts and circumstances existing as at that date.

TA-4 1 Long Term Foreign Currency Monetary Items

The Company has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP The policy is detailed in Note No. 17(c) of notes to Financial Statements for the year ended 31st March 2018 .

TA-51 Investments in subsidiaries and Associates

The Company has elected to measure all its Investments in Subsidiaries & Associates at the Previous GAAP, carrying amount as its deemed cost on the date of transition to Ind AS.

TB1 Mandatory Exceptions from retrospective application

The Company has applied the following exceptions to the retrospective application of Ind AS as mandatorily required under Ind AS 101.

TB-11 Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

These are as under:

- Fair Valuation of financial instrument.

- Impairment of financial assets based on expected credit loss model

- Determination of the discounted value for financial instruments carried at amortised cost

TB-21 Classification and measurement of Financial Assets

The classification of financial assets to be measured at amortised cost or fair value through other comprehensive income or through profit & loss is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

TC1 Transition to Ind AS - Reconciliations

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

[C-1] Reconciliation of Equity as at 1st April, 2016 - Refer Note no 52 (A)

[C-2] Reconciliation of equity as at 31st March, 2017 - Refer Note no. 52 (B)

[C-3] Reconciliation of Statement of Profit and Loss for the year ended 31st March, 2017 - Refer Note no. 52 (C)

[C-4] Adjustments to statement of Cash Flows for the year ended 31st March, 2017 - Refer Note no. 52 (E) Previous GAAP figures have been reclassified/regrouped wherever necessary to conform with financial statements prepared under Ind AS.

KEY ACCOUNTING ESTIMATES AND JUDGEMENTS

The preparation of financial statements requires management to make judgments, estimates and assumptions in the application of accounting policies that affect the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Continuous evaluation is done on the estimation and judgments based on historical experience and other factors, including expectations of future events that are believed to be reasonable. Revisions to accounting estimates are recognised prospectively.

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

Other Notes to Note No 04 to 07

A Disclosures for Property, Plant & Equipment (PPE) ,Capital Work-in-Progress (CWIP) and Intangible Assets

A1. Refer Note No 47 for information on Property, Plant and Equipment and Intangible Assets pledged as security by the Company.

A2. Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for the year ended 31st March, 2018 is Rs. 70.65 lacs ( 31st March, 2017: Rs.49.94 Lacs and 1st April, 2016: Rs. 140.28 Lacs ).

A3. There has been no impairment loss on above assets during the year.

A4. The Company has elected optional exemption under Ind AS 101 to measure Property, Plant and Equipment at previous GAAP carrying value.

A5. Borrowing costs capitalised for the year ended 31st March , 2018 is Rs. Nil (31st March , 2017 Rs. Nil And 31st March, 2016 Rs. 92.58 lacs).

B Disclosures for Investment Property

B1. The Company has identified and reclassifed Land at West Bengal amounting Rs 1281.67 Lacs. Immovable Properties as Investment Properties on the date of transition i.e. 1st April, 2016 on the basis of currently undermined future use.

B2. No amount of Income / Expenses has been recognised in Profit and Loss in relation to the above Investment Property.

B3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

B4. The Company has elected optional exemption under Ind AS 101 to measure Investment Property at previous GAAP carrying value.

B5. Since the Land at West Bengal are partial agricultural in natrue, the management has not determined the Fair Market Value of these properties from the accredited independent valuer and hence the disclosure requirement of fair value has not been furnished.

- During the year ended 31st March, 2018 and year ended 31st March, 2017 no amount was recognised as an expense for the inventories carried at net realisable value.

- Refer Note No :- 48 for details of Carrying amount of Inventories pledged with banks against Working Capital loans.

- Stores and Spares does not include machinery spares which can be used only in connection with an item of Fixed Assets.

- There are no debts due by directors or other officers of the Company or any of them either severally or jointly with any other persons or debts due by firms or private companies respectively in which any director is a partner or a director or a member.

- The Company has done the Impairment Assesement for Trade Receivables based on expected credit loss model considering the credit risk as significantely low. The Company has used a simplified approach based on a 12 months ECL. A provison matrix has been prepared based on historical credit loss experience adjusted as appropiate to reflect the current conditions and supportable forecast of future economic conditons. The Company has used the adjustment rate of 5% for worsening of future economic conditons.

(b) Terms/ Rights attached to Equity Shares

The Company has issued only one class of equity shares having a par value of Rs. 2 per share. Each equity shareholder is entitled to one vote per share.

In event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts in propotion of their shareholding.

(d) Aggregate number of bonus shares issued, shares alloted as fully paidup persuant to contract without payment being received in cash and shares bought back during the period of five years immediately preceding the reporting date: Nil

(c) Foreign Currency Monetary Item Transalation Difference Account

Exchange rate differences arising on long term foreign currency monetary items which are not directly related to property , plant and equipment are accumulated in the ''Foreign Currency Monetary Item Translation Difference Account'' and amortised over the remaining life of concerned monetary item.

Details of terms of security for long term borrowings

a) ECB Loan from Standard Chartered are secured by exclusive charge by way of equitable mortgage over all present and future immovable properties located at Bhasa Unit.

b) ECB Loan from Standard Chartered , DCB and Rupee Loan from SBI are secured by 1st pari passu charge by way of equitable mortgage over all present and future movable and immovable properties located at Surangi Unit and all present and future movable properties located at Daman Unit.

c) Rupee Term Loan from HDFC and IDFC are secured by 1st pari passu charge by way of equitable mortgage over all present and future movable and immovable properties located at Silvasa, Surangi, Daman and Bhasa Units.

d) Veichle Loan are secured by hypothecation against Motor Car.

* These Loans are repayable on demand and carries interest as applicable from time to time.

* Working capital facilities (fund based & non fund based limits) are secured by:-

1. 1st pari passu charge by way of hypothecation over entire current assets, stock and book debts of the Company both present & future.

2. 1st pari passu charge by way of equitable mortgage over property located at D-403, Dharam Place, CHS Limited, Shantivan, Borivalli (E), Mumbai - 400066.

3. 2nd pari passu charge by way of equitable mortgage over all fixed assets both present & future except immovable assets of Daman, Dankuni & Falta.

The Company has not received any intimation from the suppliers regarding their status under Micro, Small and Medium Enterprises Act 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said act has not been given.

3 Disclosure on Corporate Social Responsibility Expenses

(a) Gross amount required to be spent by the Company during the year in pursuance to the provisions of Section 135 of the Companies Act, 2013 and rules made thereunder : Rs. 72 Lacs (PY Rs. 66.61 Lacs).

(b) Amount unspent as on 31st March 2017 is Rs.63.41 lacs.

(c) Amount spent during the year 2017-18 and shown under Other Expenses in the Statement of Profit and Loss (Refer Note No. 33):

(b) Defined benefit plan:

Gratuity

The Employee''s Gratuity Fund Scheme, which is defined benefit plan, is managed by Trust maintained with Life Insurance Corporation of India. The liabilities with respect to Gratuity Plan are determined by actuarial valuation on projected unit credit method on the balance sheet date, based upon which the Company contributes to the Group Gratuity Scheme. The difference, if any, between the actuarial valuation of the gratuity of employees at the year end and the balance of funds with Life Insurance Corporation of India, is provided for as assets/ (liability) in the books. Actuarial gains/ (losses) for defined benefit plans are recognised in full and are immediately taken to the statement of profit and loss and Other Comprehensive Income accordingly as per Acturial Valuation Report.. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to 15 to 30 days'' salary for each completed year of service . Vesting occurs upon completion of five continuous years of service in accordance with Indian law. The gratuity fund is separately administered by a Gratuity Fund Trust.

The weighted average duration of the defined benefit plan obligation at the end of the reporting period is 5.52 Years (31st March,2017: 8.28 years).

The best estimate contribution for the company during the next year would be Rs 55.61 lacs.

(31st March,2017: Rs. 50.09 lacs).

Amount payable upon discontinouance of all employment is INR 263.82 lacs.

(31st March,2017: Rs. 206.90 lacs).

4 Disclosures as required by Ind AS 108, Operating Segments

(a) Identification of Operating Segments:

The Compnay Operate in a Single Reportable Operating Segment i.e. manufacturing and sale of PVC , XLPE, AF and EP Compound which have similar risk and returns and are of similar nature.

No other operating segments have been aggregated to form the above reportable operating segments as per the criteria specified in the Ind AS.

(b) Business Segment wise revenue/results/assets/liabilities

Since there is Single Reportable Operating Segment hence disclosure of Operating Segment wise Assets,Liabilities, Revenue and Results are not applicable.

(d) The Company does not have material amount of tangible, intangible assets and non current operating assets located outside India.

(e) Product wise revenue from external customers has been detailed in Note No 27.

(f) Revenue from five customers is INR 19,471.97 (P.Y 23,386.18) lacs which is more than 10% of the total revene of the Company

The transactions with related parties are net of taxes & reimbursement of expenses and have been made on terms equivalent to those that prevail in arm''s length transactions. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

5 Fair Value Measurement

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

(1) Fair value of cash and short-term deposits, trade and other short term receivables, trade payables , other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to the short term maturities of these instruments.

(2) Financial instruments with fixed and variable interest rate are evaluated by the Company based on parameter such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken into account for the expected losses of these receivables.

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

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

Level 2 : other techniques for which all inputs which have a significant effects on the recorded fair value are observable, either directly or indirectly.

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

6 Financial Risk Management Objective and Policies:

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables and advances from customers. The main purpose of these financial liabilities is to finance the Company''s operations, projects under implementation and to provide guarantees to support its operations. The Company''s principal financial assets include Investment, loans and advances, trade and other receivables and cash and bank balances that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company''s financial risk management policy is set by the Managing Board.

All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes to be undertaken. The Board of Directors reviews and finalises policies for managing each of these risks, which are summarised 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 commodity price risk. Financial instruments affected by market risk include investments and deposits, foreign currency receivables, payables, loans and borrowings and derivative financial instruments.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits and policies.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regard to interest income and interest expenses to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

(ii) 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''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating and financing activities. The Company manages its foreign currency risk by hedging transactions that are expected to realise in future.

Foreign Currency Sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of unhedged monetary assets and liabilities.

Derivative Financial Instrument

The company holds Derivative financial instrument such as foreign currency forward and option contracts to mitigate the risk of changes in exchange rate on foreign currency exposures. The counterparty for this contract is generally a Bank. Although the company believes that these derivatives constitute hedges from an economic perspective these do not qualify for hedge accounting as per IND AS 109, Financial instrument. Since the above derivatives are not designated as hedges, such derivatives are categorised as financial asset or financial liability at fair value through profit & loss.

(iii) Commodity price risk

Principal Raw Material for Company''s products is variety of plastic polymers which are primarily Derivatives of Crude Oil. Company sources its raw material requirement from across the globe. Domestic market prices are also generally remains in sync with international market price scenario. Volatility in Crude Oil prices, Currency fluctuation of Rupee vis-a-vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price and availability of polymers for the Company. Company effectively manages with availability of material as well as price volatility through:

1. Widening its sourcing base

2. Appropriate contracts and commitments

3. Well planned procurement & inventory strategy and

4. Prudent hedging policy on foreign currency exposure

Risk committee of the Company comprising members from Board of Directors and operations has developed and enacted a risk management strategy regarding commodity Price risk and its mitigation.

(b) Credit Risk

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables and advances to suppliers) and from its financing activities, including deposits and other financial instruments.

(i) Trade Receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. An impairment analysis is performed at each reporting date on an individual basis for major clients.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The ageing analysis of the receivables (gross of provisions) have been considered from the date of the invoice falls due.

(ii) Financial Instruments and Cash and bank balances

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy. Credit limits of all authorities are reviewed by the Management on regular basis. All balances with banks and financial institutions is subject to low credit risk due to good credit ratings assigned to these entities.

(c) Liquidity Risk

The Company monitors its risk of a shortage of funds using a liquidity planning tool. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of cash credit, letter of credit, factoring,bill discounting and working capital limits.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual payments.

7 Capital Management:

A. For the purpose of the Company''s capital management, equity includes issued equity capital, securities premium and all other equity reserves attributable to the equity share holders, including capital reserve and net debt includes interest bearing loans and borrowings except cash and cash equivalents. The primary objective of the Company''s capital management is to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The funding requirement is met through a mixture of equity, internal accruals, long term borrowings and short term borrowings. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

B. Proposed Dividend

The Board of directors in its Board meeting held on 30th May 2018 have recommended the payment of a final dividend of Rs 0.24 paise per fully paid up equity share (March 31,2017 - Rs NIL ), The proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

(D) Notes to the Reconciliation

1. Property Plant & Equipment

The Company has elected to measure all its Property, Plant and Equipment at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS i.e., 1st April, 2016. However, the Company has identified and reclassifed Land at West Bengal amounting Rs 1281.67 Lacs immovable properties as Investment Properties on the date of transition i.e. 1st April, 2016 on the basis of currently undermined future use and the same has been adjusted accordingly on the 1st April 2015 & 31st March 2016.

2. Non Current Investments

The company holds certain investments in Quoted Equity shares as well as unquoted equity shares. As per IND AS 109, these investments are to be measured at Fair value through profit & loss. Loss at the time of transition of Rs. 60.22 lacs is recognised in retained earnings and subsequent gain of Rs. 135.10 only is recognised in statement of profit and loss. Also investment amounting to Rs 7.32 lacs has been written back in the statement of profit and loss in the financial year 2016-17 as the same has been written off as on the transition date.

The company also holds certain Investments in Government and trust securities such as Kisan Vikas Patra, National Saving Certificate etc. The company has no expectations of recovering such investment in its entirety such investment has been written off and adjusted with Retained earnings amounting to Rs 0.40 lacs.

3 Other Non Current Financial Assets/ Non Current Assets & Current Assets

The Company has recognized the present value of security deposit receivable as on the transition date due to which Rs. 3.20 lacs has been de-recognised from the security deposit receivable and Prepaid Rent of the same amount has been recognised. In the financial year 2016-17 Rs. 0.96 Lacs has been de-recognised from the security deposit receivable and Prepaid Rent of the same amount has been recognised. Subsequent to the date of transition to IND AS interest income has been recognised by increasing the security deposit receivable on account of discounting factor and also prepaid rent would be subsequently expensed off over the life of such security deposits, accordingly 0.76 lacs has been expensed off and Rs. 0.71 lacs has been recognised as interest income in Retained earnings as on transition date. Subesquently in the financial year 2016-17 Rs. 1.51 lacsof rent has been expensed off and Rs. 1.46 lacs has been recognised as interest income in Retained earnings. Prepaid portion of Security deposit has also been further sub classified as Current , Non - Current based on realisation criteria.

4 Current Trade Receivables

The Company has applied practical expediency in calculation of the expected credit losses on trade receivables by using the provision matrix for each business segment as detailed in Note No. 13 of notes to the financial statements. Outstanding balance of provision as at 31st March, 2017: Rs.9.95 crores and as at 1st March, 2016: Rs.10.98 Crore.

5 Other Equity

The adjustments pertaining to opening balance sheet at the time of transition to Ind AS are adjusted into retained earnings and subsequently , the adjustments are made into Profit or Loss or Other Comprehensive Income as prescribed under Ind AS. _

6 Borrowings

Under Indian GAAP, transaction costs incurred in connection with borrowings were amortised upfront and charged to profit or loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and subsequently charged to profit or loss using the effective interest method. Accordingly as on the transition date, processing fees of Rs. 38.00 lacs has been included in the initial recognition amount of the borrowings by crediting Retain earnings. In the subsequent year 2016-17 processing fees of Rs. 49.07 Lacs has further been included in the initial recognition amount of borrowings by subsequently crediting Profit & loss account and Rs. 9.89 Lacs has been debited to Profit & Loss a/c on account of amortisation of processing fees. The company has taken unsecured loan from related parties at lower interest rate and the same has been measured at amortised cost using present value technique considering interest rate prevailing in market. Accordingly Rs. 14.04 crores has been credited to Retain earnings on account of fair valuation as on transition date and subsequently Rs. 1.59 crores has been debited to profit & Loss on account of interest provision on such unsecured loan.

7 Deferred Tax Liability/Asset

Indian GAAP required deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. On the date of transition, the net impact on deferred tax liabilities of Rs.98.18 lacs has been recognised in retained earnings and for the year ended 31st March 2017,deferred tax liability reversal of Rs.60.57 lacs has been recognised in statement of profit and loss.

8 Sale of Goods

Under IND AS volume discount are to be netted off from sale of product which was accounted as expense under Indian GAAP. Hence sale of product is reduced by Rs. 477.36 lacs for the period ended 31st March 2017. Under Indian GAAP sale of goods was presented as net of excise duty. However under INDAS sale of goods include excise duty. Excise duty on sale of goods is seperately presented on the face of statement of profit & loss. Accordingly sale of goods under INDAS for the year ended 31st march 2017 has increased by 18699.98 lacs.

9 Employee Benefit Expenses

Both under Indian GAAp and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised in the balance sheet through OCI. Thus the employee benefit expense is reduced by Rs.4.53 Lacs and remeasurement gains/ losses on defined benefit plans has been recognized in the OCI net of tax.

(E) There is no material impact on the Statement of Cash Flows due to the transition from previous GAAP to Ind AS.

8 Standard issued but not yet effective

Ministry of Corporate Affairs (“MCA”) through Companies (Indian Accounts Standards) Amendment Rules, 2018 has notified the following amendments to Ind AS viz. Ind AS 115- Revenue from contracts with Customers, Ind AS-21- The effect of charges in Foreign Exchange Rates, Ind AS 12 - Income Taxes, Ind AS 40 - Investment Property & Ind AS 28 - Investments in Associates and Joint Ventures which the Company has not applied as they are effective for annual periods beginning on or after 1st April, 2018.

Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.

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Mar 31, 2016

i) Terms of repayment of long-term borrowings are as follows:

Term Loans from Banks

USD 6.53 million equivalent to Rs. 3821.07 lacs (31.03.2015:USD 11.28 million equivalent to Rs. 6411.37 lacs) loan is secured by 1st pari passu charge by way of equitable mortgage over all present and future movable and immovable properties located at Surangi Unit and all present and future movable properties located at Daman & Falta unit and is repayable in 16 equal quarterly installments; the next installment is due on 27th April, 2016 and Rupee term loan 3210.72 lacs is secured by 1st pari pasu charge by way of equitable mortgage over all present and future movable and immovable properties located at Surangi Unit and all present and future movable properties located at Daman & Falta unit, hypothecation of present & future Current Assets of the Company on Second pari-passu basis, the first instalment due on 31st of December 2016. (P.Y. USD 5.73 million equivalent to Rs. 3521.89 lacs, Euro 3.41 million equivalent to Rs. 2266.65 lacs and INR loan amounting to Rs. 4787.50 lacs have been fully repaid.)

i) Working Capital Loans from Banks are secured by way of hypothecation of stocks of raw materials, work-in-progress, finished goods, stores & spares and book debts of the Company. Mortgage of Flat located at D-403, Dharam Palace, CHS limited, Shantivaan, Borivalli(E), Mumbai-400066, on First Pari-passu basis. These loans are further secured by a second charge over the residual value on the Fixed assets of the units both present and future except Daman.

1. EMPLOYEE BENEFITS

i Provision for defined contribution plan viz. Provident and Other Fund amounting to Rs. 99.73 lacs (Previous Year Rs. 25.43 lacs) has been charged to the Profit and Loss Account during the year.

ii Description of type of employee benefits: The Company offers to its employees defined benefits plans in the form of Gratuity and leave encashment. Fund is created for payment of gratuity. However, no fund is created for payment of leave wages, the Company would pay the same out of its own funds as and when the same becomes payable.

iii Para 132 of AS-15 (Revised 2005) does not require any specific disclosure except where expenses resulting from compensated absence is of such size, nature or incidence that disclosure is relevant under Accounting Standard 5 or Accounting Standard 18 and accordingly the expenses resulting from compensated absence is not significant and hence no disclosures are given under various paragraphs ofAS-15.

2. SEGMENTREPORTING

i. Primary Segment (Business Segment):The Company operates in a single reportable segment (i.e. Manufacturing and sale of PVC and XLPE compound, which have similar risk and returns for the purpose ofAS 17 on ''Segment Reporting'' issued by ICAI.

Note: The Company has common assets for producing goods for domestic market and overseas markets. Hence, separate figures for other assets / additions to other assets has not been furnished.

3 RELATED PARTY DISCLOSURES

As per Accounting Standard 18 on related party disclosure issued by the Institute of Chartered Accountants of India, the transaction with related parties of the company are as follows.

Related Parties with whom the company had transactions during the year Key Management Personnel : Mr. Narrindra Suranna, Mr. Rajesh Kumar Kothari

Relatives of Key Management Personnel : Mrs. Tara Devi Surana, Mrs. Sarla Devi Surana, Mr. Surendra Kumar Surana, Mr. Dev Krishna Surana

A Shareholder holding more than 20% of Equity Shares of the Company : Sriram Financial Consultants Pvt. Ltd

4. The provision for Income Tax has been made U/s 115JB of Income Tax Act.

5. Previous year’s figures have been reclassified to conform to current years classifications.

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Mar 31, 2015

1. Terms/ Rights attached to Equity Shares:

The Company has only one class of shares referred to as equity shares having a par value of ? 10/-. Each holder of equity shares is entitled to vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company, after distribution of all preferential amount, in proportion of their shareholding.

2. Terms of repayment of long-term borrowings are as follows: (Rs. in Lacs)

Term Loans from Banks

a) USD 1.25 million equivalent to Rs. 719.87 lacs (31.03.2014: USD 3.75 million equivalent to Rs. 2056.87 lacs) loan is secured by exclusive charge on immovable assets of Bhasa Unit in Kolkata and Silvassa Unit-I, Exclusive charge on all movable fixed assets of Kandua Unit, Kolkata, Exclusive charge on all movable assets of Bhiwadi Unit. and is repayable in 16 equal quarterly installments; the next installment is due on 30th May, 2015.

b) USD 11.28 million equivalent to Rs. 6411.37 lacs (31.03.2014:USD 16.03 million equivalent to Rs. 8893.47 lacs) loan is secured by 1st pari passu charge by way of equitable mortgage over all present and future movable and immovable properties located at Surangi Unit and all present and future movable properties located at Daman & Falta Unit. and is repayable in 16 equal quarterly installments; the next installment is due on 20th April, 2015 and Rupee term loan Rs. 550 lacs loan is secured by 1st pari passu charge by way of equitable mortgage over all present.

c) USD 4.48 million equivalant to Rs. 2802.02 lacs(31.03.2014: USD 4.48 million equivalent to f2690.54 lacs), EURO 3.41 million equivalant to Rs. 2266.65 lacs(31.03.2014: EURO 3.41 million equivalant to Rs. 2814.91 lacs) and Indian rupee loan amounting Rs. 4787.50 lacs (31.03.2014: Rs. 3662.50 lacs) is secured by pari passu charge on movable and immovable assets of Dankuni Unit in Kolkata and is repayable in 16 equal quarterly installments; the next installment is due on 27th April, 2015.

Term Loan from Others

a) Indian rupee loan amounting Rs. 117.47 lacs (31.03.2014: Rs. 36.96 lacs) is secured by Hypothecation against Motor Car and repayable in 60 equal monthly installments.

i) Working Capital Loans from Banks are secured by way of hypothecation of stocks of raw materials, work-in- progress, finished goods, stores & spares and book debts of the Company. Mortgage of Flat located at D- 403, Dharam Palace, CHS limited,Shantivaan, Borivalli (E), Mumbai-400066, on First Pari-passu basis. These loans are further secured by a second charge over the residual value on the Fixed assets of the units both present and future located at the Dabhel Industrial area, Daman.

ii) The Company has not received any intimation from the suppliers regarding their status under Micro, Small and Medium Enterprises Act 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said act has not been given.

iii) There are no amounts due for payment to the Investor Education and Protection Fund Under Section 205C of the Companies Act, 1956 as at the year end.

vi) There was an impairment loss on Fixed Assets amounting to Rs. 241.48 Lacs on the basis of review carried out by management in accordance with Accounting Standard issued by the Institute of Chartered Accountants of India.

* Amount is below the rounded off norms as adopted by the company.

i) No provision has been made for the diminuation of Rs. 67.71 lacs in the valuation of investments determined on individual basis, held by the company as the same is considered temporary in nature as the investments have been made for a long term.

ii) National Saving Certificates and Kissan Vikas Patra have been lodged with various authorities as margin deposit and security money.

(Rs. in Lacs)

As at As at March 31, 2015 March 31, 2014

3. CONTINGENT LIABILITIES

Bank Guarantee 725.31 526.09

Claims against the company not acknowledged as debts. (Refer Note No.(i) below)

Sales Tax Matters - 1,240.18

Excise and Custom Duty Matters 29.35 29.35

Total 754.66 1,795.62

4. EMPLOYEE BENEFITS Rs. in Lacs)

i Provision for defined contribution plan viz. Provident and Other Fund amounting to Rs. 25.43 lacs (Previous Year Rs. 50.30 lacs) has been charged to the Profit and Loss Account during the year.

ii Description of type of employee benefits: The Company offers to its employees defined benefits plans in the form of Gratuity and leave encashment. Fund is created for payment of gratuity. However, no fund is created for payment of leave wages, the Company would pay the same out of its own funds as and when the same becomes payable.

iii Para 132 of AS-15 (Revised 2005) does not require any specific disclosure except where expenses resulting from compensated absence is of such size,nature or incidence that disclosure is relevant under Accounting Standard 5 or Accounting Standard 18 and accordingly the expenses resulting from compensated absence is not significant and hence no disclosures are given under various paragraphs of AS-15.

5. SEGMENT REPORTING

i. Primary Segment (Business Segment):The Company operates in a single reportable segment (i.e. Manufacturing and sale of PVC and XLPE compound,which have similar risk and returns for the purpose of AS 17 on 'Segment Reporting' issued by ICAI.

Note: The Company has common assets for producing goods for domestic market and overseas markets. Hence, separate figures for other assets / additions to other assets has not been furnished.

6. RELATED PARTY DISCLOSURES

As per Accounting Standard 18 on related party disclosure issued by the Institute of Chartered Accountants of India, the transaction with related parties of the company are as follows :

Related Parties with whom the company had transactions during the year.

Key Management Personnel : Mr. Narrindra Suranna, Mr. Rajesh Kumar Kothari, Dr. P. R. Mukherjee. Relatives of Key Management Personnel : Mrs. Tara Devi Surana, Mrs. Sarla Devi Surana, Mr. Surendra Kumar Surana, Mr. Dev Krishna Surana

A Shareholder holding more than 20% of Equity Shares of the Company : Sriram Financial Consultants Pvt. Ltd.

7. The provision for Income Tax has been made U/s 115JB of Income Tax Act.

8. Previous years figures have been reclassified to confirm to current years classifications.

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Mar 31, 2014

(Rs. in Lacs) March 31, 2014 March 31, 2013

1. CONTINGENT LIABILITIES

Bank Guarantee 526.09 411.32

Claims against the company not acknowledged a debts. (Refer Note No.(i) below)

Sales Tax Matters 1,240.18 1,240.18

Excise and Custom Duty Matters 29.35 29.35

Total 1,795.62 1,680.85

(i) Future cash flows in respect of the above are determinable only on receipt of judgements/decision pending with various forums/authorities

2. EMPLOYEE BENEFITS

i Provision for defined contribution plan viz. Provident and Other Fund amounting to Rs. 50.30 lacs (Previous Year Rs. 39.60 lacs) has been charged to the Profit and Loss Account during the year.

ii Description of type of employee benefits: The Company offers to its employees defined benefits plans in the form of Gratuity and leave encashment. Fund is created for payment of gratuity. However, no fund is created for payment of leave wages, the Company would pay the same out of its own funds as and when the same becomes payable. (Rs. in Lacs)

iii Para 132 of AS-15 (Revised 2005) does not require any specific disclosure except where expenses resulting from compensated absence is of such size,nature or incidence that disclosure is relevant under Accounting Standard 5 or Accounting Standard 18 and accordingly the expenses resulting from compensated absence is not significant and hence no disclosures are given under various paragraphs of AS-15.

*The estimates of future salary increases considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

3. SEGMENT REPORTING

i Primary Segment (Business Segment):The Company operates in a single reportable segment (i.e. Manufacturing and sale of PVC and XLPE compound, which have similar risk and returns for the purpose of AS 17 on ''Segment Reporting'' issued by ICAI.

Note: The Company has common assets for producing goods for domestic market and overseas markets. Hence, separate figures for other assets / additions to other assets has not been furnished.

4. RELATED PARTY DISCLOSURES

As per Accounting Standard 18 on related party disclosure issued by the Institute of Chartered Accountants of India, the transaction with related parties of the company are as follows. i Related Parties with whom the company had transactions during the year

Key Management Personnel : Mr. Narrindra Suranna, Mr. Rajesh Kothari

Relatives of Key Management Personnel : Mrs. Tara Devi Surana, Mrs. Sarla Devi Surana, Mr.

Surendra Kumar Surana, Mr. Dev Krishna Surana

A Shareholder holding more than 20% of Equity Shares of the Company : Shriram Financial

Consultants Pvt. Ltd ii Disclosure of transactions between the Company and Related Parties and the status of outstanding balances as on 31st March, 2014 (Rs. in Lacs)

* The amount is below the roundoff norms as adopted by the Company.

5. The provision for Income Tax has been made U/s 115JB of Income Tax Act.

6. Previous years figures have been reclassified to confirm to current years classifications.

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Mar 31, 2013

(Rs.in Lacs)

March 31, 2013 March 31, 2012

1. CONTINGENT LIABILITIES

Bank Guarantee 411.32 370.07

Claims against the company not acknowledged as debts. (Refer Note No.(i) below)

Sales tax matters 1,240.18 1,240.18

Excise and Customs duty matters 29.35 29.35

Total 1,680.85 1,639.60

(i) Future cash outflows in respect of the above are determinable only on receipt of judgements / decisions pending with various forums/ authorities

2. EMPLOYEE BENEFITS

i Provision for defined contribution plan viz. Providend and Other Fund amounting to Rs. 27.95 lacs (Previous Year Rs. 26.65 lacs) has been charged to the Profit and Loss Account during the year.

ii Description of type of employee benefits: The Company offers to its employees defined benefits plans in the form of Gratuity and leave encashment. Fund is created for payment of gratuity. However, no fund is created for payment of leave wages, the Company would pay the same out of its own funds as and when the same becomes payable.

iii Para 132 of AS-1 5 (Revised 2005) does not require any specific disclosure except where expenses resulting from compensated absence is of such size.nature or incidence that disclosure is relevant under Accounting Standard 5 or Accounting Standard 18 and accordingly the expenses resulting from compensated absence is not significant and hence no disclosures are given under various paragraphs of AS-15.

3. SEGMENT REPORTING

i Primary Segment (Business Segment):The Company operates in a single reportable segment (i.e. Manufacturing and sale of PVC and XLPE compund.which have similar risk and returns for the purpose of AS 17 on ''Segment Reporting''issued by ICAI.

4. RELATED PARTY DISCLOSURES

As per Accounting Standard 18 on related party disclosure issued by the Institute of Chartered Accountants of India, the transaction with related parties of the company are as follows.

i Related Parties with whom the company had transactions during the year

Key Management Personnel : Mr. Narrindra Suranna, Mr. Rajesh Kumar Kothari

Relatives of Key Management Personnel : Mrs. Tara Devi Surana, Mrs. Sarla Devi Surana, Mr. Surendra Kumar Surana, Mr. Dev Krishna Surana

A Shareholder holding more than 20% of Equity Shares of the Company : Shriram Financial Consultants Pvt. Ltd

5. The provision for Income Tax has been made U/s 11 5JB of Income Tax Act.

6. Previous years figures have been reclassified to confirm to current years classifications.

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Mar 31, 2012

1. (Rs. in Lacs) March 31, 2012 March 31, 2011

CONTINGENT LIABILITIES

Particulars

Bank Guarantee 370.07 487.60

Claims against the company not acknowledged as debts. (Refer Note No.(i) below) Sales tax matters 1,240.18 1,240.18

Excise and Customs duty matters 29.35 29.35

Total 1,639.60 1,757.13

(i) Future cash outflows in respect of the above are determinable only on receipt of judgements / decisions pending with various forums/ authorities

2. EMPLOYEE BENEFITS

i Provision for defined contribution plan viz. Providend and Other Fund amounting to Rs. 26.65 lacs (Previous Year Rs. 27.01 lacs) has been charged to the Profit and Loss Account during the year.

ii Description of type of employee benefits: The Company offers to its employees defined benefits plans in the form of Gratuity and leave encashment. Fund is created for payment of gratuity. However, no fund is created for payment of leave wages, the Company would pay the same out of its own funds as and when the same becomes payable.

iii Para 132 of AS-15 (Revised 2005) does not require any specific disclosure except where expenses resulting from compensated absence is of such size,nature or incidence that disclosure is relevant under Accounting Standard 5 or Accounting Standard 18 and accordingly the expenses resulting from compensated absence is not significant and hence no disclosures are given under various paragraphs of AS-15.

3. SEGMENT REPORTING

i Primary Segment (Business Segment):The Company operates in a single reportable segment (i.e. Manufacturing and sale of PVC and XLPE compund,which have similar risk and returns for the purpose of AS 17 on 'Segment Reporting' issued by ICAI.

4. RELATED PARTY DISCLOSURES

As per Accounting Standard 18 on related party disclosure issued by the Institute of Chartered Accountants of India, the transaction with related parties of the company are as follows.

i Related Parties with whom the company had transactions during the year

Key Management Personnel : Mr. Narrindra Suranna, Mr. Indranil Dasgupta, Mr. Rajesh Kothari Relatives of Key Management Personnel : Mrs. Tara Devi Surana, Mrs. Sarla Devi Surana, Mr. Dalam Chand Surana, Mr. Surendra Kumar Surana, Mr. Dev Krishna Surana

A Shareholder holding more than 20% of Equity Shares of the Company : Shriram Financial Consultants Pvt. Ltd

5. The provision for Income Tax has been made U/s 115JB of Income Tax Act.

6. The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified/ regrouped to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement priciples followed for preparation of financial statements.

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Mar 31, 2010

1 As per resolution passed by the members at the Extraordinary General Meeting held on 4th September, 2009, the company has allotted 60,00,000 (Sixty Lacs) Warrants convertible into equal number of Equity Shares at a price of Rs. 80/- per warrant including a premium of Rs. 70/- per warrant, on 27th November, 2009, on preferential basis. The Warrants shall be converted into equity shares within 18 months from the date of allotment as per SEBI Guidelines. KIL has received 25% as upfront deposit amounting to Rs.1,20,000 Thousands which is shown under Share Warrant Account.

2 Amalgamation:

i Pursuant to the Scheme of Arrangement (the Scheme) approved by the shareholders and sanctioned by the Honble High Court at Calcutta on 3rd August 2010. Certified copy of the same was received on 26th August, 2010. The scheme became effective on 27th August, 2010. Under the provisions of the Companies Act, 1956 (the Act), the undertakings of Alkom Speciality Compounds Limited , the transferor companies was transferred to and vested in the company as a going concern with effect from 1st April2009 (the Appointed Date) and accordingly the Scheme had been given effect to in these accounts. According to the said Scheme, with effect from the Appointed Date, Alkom speciality Compounds Limited has carried out all their business and activities in trust for the Company till the Scheme becomes effective.

ii In accordance with the scheme 940,986 number of Equity Shares of Rs. 10/- each fully paid up andranking pari passu with the existing equity shares are to be issued by the company to the ordinary shareholders of Alkom Speciality Compounds Limited in the ratio of 1 (one) equity share of Rs. 10/- each of the company for every 10 (Ten) equity shares of Rs. 10/- each fully paid up held in Alkom Speciality Compounds Limited.

iii The Amalgamation has been accounted for in the books of account of KIL according to the pooling of interests method under Accounting Standard (AS) 14, Accounting for Amalgamations issued by the Institute of Chartered Accountants of India.

iv Accordingly on and from the Appointed Date all assets, liabilities and reserves of Alkom Speciality Compounds Limited transferred to KIL under the Scheme and recorded in the books of accounts of KIL at their respective book value and in the same form and manner as recorded in the books of accounts of Alkom Speciality Compounds Limited.

v Due to differences in accounting policy between Alkom Speciality Compounds Limited and KIL for providing depriciation on certain assets, the amount of Rs.6758 thousands has been adjusted in the General Reserves of KIL to ensure that the financial statements of KIL reflect the financial position on the basis of consistent accounting policy.

vi Pending completion of relevant formalities of transfer of certain assets and liabilities acquired/transferred pusuant to the Scheme of Arrangement, such assets and liabilities remain included in the books of the company under the name of the transferor/transferee companies.

3 Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account and not provided for is amounting to Rs.32188/- Thousands. (Net of advances)

4 Secured Loans.

i Term Loan From Banks:

These Loans are secured by first charge created by way of mortgage of companys Land and Building and other fixed assets located at D-403, Dharam Palace, CHS limited,Shantivana, Borivalli (E) , Mumbai-400066, on first Pari-passu basis.

ii Cash Credits and working capital demand from Banks:

a Is secured by way of hypothecation of stocks of raw materials, work-in-progress, finished goods, stores & spares and book debts of the Company.

b Mortgage of Land and Building Plant and Machinery located at D-403, Dharam Palce, CHS limited,Shantvaan, Borivalli (E) , Mumbai-400066, on First Pari-passu basis.

c These loans are further secured by a second charge over the residual value on the Fixed assets of the units both present and future located at the Dabhel Industrial area, Daman and others.

iii Car Loan

Car Loan is secured by Hypothecation against Motor Car (BMW).

5 Interest includes interest on Term Loan Rs.9326 thousands. (Previous year Rs.16626/- thousands)

6 Contingent Liability not Provided in the books:

particulars 2009-10 2008-09

Letter of Credit 213,408 220,481

Bank Guarantee 23,083 26,220 Excise Duty demands pending in appeal 1,330 1,330 with CEGAT

Penalty levied by Excise Authorities 1,605 1,605

Income Tax Demand under appeal not - 121 provided for

Total 239,426 249,757

7 Sundry Debtors/ Creditors:

Closing Balances of Sundry Debtors, Advances, other Receivables and Creditors are subject to confirmation to be obtained from parties. The company has initiated procedures for obtaining confirmation from such parties.

8 Sundry Creditors:

The Company had sought confirmation from its vendors on their status under Micro, Small and Medium Enterprises Development Act, 2006. Based on the confirmations received till date, there are some vendors who have confirmed that they are covered under the Micro, Small and Medium Enterprises Development Act, 2006. Disclosures as required by section 22 of the The Micro, Small and Medium Enterprises

9 Segment reporting:

Primary Segment (Business Segment):The Company operates in a single reportable segment (i.e.Manufacturing and sale of PVC and XLPE compund, which have similar risk and returns for the purpose of AS 17 on Segment Reporting issued by ICAI.

Provision for defined contribution plan viz. Providend and Other Fund amounting to Rs.1597. thousands has been charged to the Profit and Loss Account during the year.

ii Description of type of employee benefits: The Company offers to its employees defined benefits plans in the form of Gratuity and leave encashment. No fund is created for payment of gratuity and leave wages and the Company would pay the same out of its own funds as and when the same becomes payable.

iii Para 132 of AS-15 (Revised 2005) does not require any specific disclosure except where expenses resulting from compensated absence is of such size,nature or incidence that disclosure is relevant under Accounting Standard 5 or Accounting Standard 18 and accordingly the expenses resulting from compensated absence is not significant and hence no disclosures are given under various paragraphs of AS-15.

10 Related Party Transactions:

As per Accounting Standard 18 (AS-18) on related party disclosure issued by the Institute of Chartered Accountants of India, the transaction with related parties of the company are as follows.

11 National Saving Certificates, Kishan Vikas Patra and Fixed Deposits are disclosed as deposit under the head Cash and Bank Balances have been lodged with various authorities as margin deposit and security money.

12 There was no impairment loss on Fixed Assets on the basis of review carried out by mnagement in accordance with Accounting Standard issued by the Institute of Chartered Accountants of India.

13 There are no amount due and outstanding to be credited to Investor Education and Protection Fund.

14 Previous Years figures are regrouped or rearranged wherever necessary to conform to this years classification.

15 Figures in the Schedules have been rounded off to the nearest Thousand.