Notes to Accounts of M M Rubber Company Ltd.

Mar 31, 2024

j PROVISIONS AND CONTINGENT LIABILITIES:

i) A provision is recognized when the Company has a present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits, decommissioning and site restoration cost) are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

ii) Financial effect of contingent liabilities is disclosed based on information available upto the date on which financial statements are approved. However, where a reasonable estimate of financial effect cannot be made, suitable disclosures are made with regard to this fact and the existence and nature of the contingent liability.

k EARNINGS PER SHARE:

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

1 FINANCIAL INSTRUMENTS:

Financial assets and liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss; are added to or deducted from the fair value measured on initial recognition of financial asset or financial liability.

(i) Cash and Cash Equivalents:

Cash and Cash Equivalents comprise cash and deposit with banks other than for term deposit earmarked for Bank Guarantee. The company considers all highly liquid investments including demand deposits with bank with an original maturity of three months or less and that are readily convertible to knovm amounts of cash to be cash equivalents.

(ii) Financial assets at amortized cost:

Financial assets cure subsequently measured at amortized cost if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial liabilities:

Financial liabilities are subsequently carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

m IMPAIRMENT:

(i) Financial Assets:

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount equal to the life time expected credit losses if the credit risk on the financial asset has increased significantly since initial recognition.

(ii) Non Financial Assets:

A non financial asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss, if any, is charged to statement of profit and loss, in the year in which an asset is identified as impaired, n Exceptional Items:

Exceptional items are disclosed separtely in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the Company. These are material items of income or expense that have to be shown seprately due to the significance of their nature or amount.

1C Employee Benefits:

The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial basis using various assumptions.The assumptions used in determining the net cost/(income) includes the discount rate, wage escalation and employee attrition. Any changes in these assumptions will impact the carrying amount of obligations. The discount rate is based on the prevailing market yields of Indian Government securities as at the Balance Sheet date for the estimated term of the obligations.

ID "Foreign ExchangeTransactions/Translation

The functional currency of the Company is the Indian rupee. Transactions in foreign currencies are accounted at functional currency, at the exchange rate prevailing on the date of transactions. Gains/losses arising out of the fluctuations in the exchange rate between functional currency and foreign currency are recognized in the Statement of Profit &Loss in the period in which they arise. The fluctuations between foreign currency and functional currency relating to monetary items at the year ending are accounted as gains / losses in the Statement of Profit & Loss."

"Cash Flow Statement: Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non -cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated."

33. Operating Lease (lad As 12):

The Company has various operating leases for office facilities which is renewable on a periodic basis, and cancelable at its option. Rental expenses for operating leases included in the financial statements for the year are ? 1,07,23,210/-(PreviousYear ? 92,98,768/-).

34. Financial Risk Management Objectives and Policies:

The entity''s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the entity''s operations to support its operations. The entity’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents that are derived directly from its operations.

The entity is exposed to market risk/credit and liquidity risks. The entity''s senior management oversee the management of these risks. The board reviews their activities. No significant derivative activities have been undertaken so far.

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 risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include deposits, FVTOCI investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the positions as at March 31, 2024 and March 31, 2023:

The analyses exclude the impact of movements in market variables on the carrying values of gratuity and other postretirement obligations; provisions; and the non-financial assets and liabilities of foreign operations.

The following assumption has been made in calculating sensitivity analyses.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and March 31,2023 including the effect of hedge accounting.

Intorcst rate risk

Changes in market conditions that give rise to market risk include changes in a benchmark interest rate, the price of another entity''s financial instrument, a commodity price, a foreign exchange rate or an index of prices or rates.

The Company has not classified any Financial Asset or Liabilities as measured at Fair value through Profit and Loss (FVTPL) or measured at Fair Value through Other Comprehensive Income (FVTOCI).

The Fail Value of the above financial assets and liabilities are measured at amortized cost which is considered to be approximate to their fair values.

36. Hitherto the Company was valuing the closing stock of inventory pertaining to finished products comprising of different individual products on the basis of net billing price of such product which was not in accordance with Indian Accounting standard No.2. During the financial year 2023-2024 the Company has changed the method of valuation of closing stock i.e.Inventories are stated at lower of cost and net realizable value which is in accordance with Indian accounting standard No.2 and because of this change there has been reduction in value of closing stock of inventory. In the absence of sufficient appropriate information with regard to total value of inventories on the basis of net billing price, It is not possible to ascertain the finanacial impact on the financial statements .This change in method ofValuation of inventories is the major reason because of which the Company has incurred a loss of Rs. 163.31 lakhs for the current financial year 2023-24.

39 The company doesn''t have title deeds which are held other than in the company''s name as at the balance sheet date.

40 Tlx© company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

41 The company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period as at the balance sheet date.

42 The proceedings haven''t been initiated or pending against the company for holding any benami property under the BenamiTransactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder as at the balance sheet date.

43 The Company has not revalued its Property. Plant and Equipment (including Right-ofUse Assets), intangible assets and investment property as at the balance sheet date.

44 The company has neither advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity (ies) , including foreign entities (Intermediaries) nor received with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any maimer whatsoever by or on behalf of the company/Fundingparty (Ultimate Beneficiaries).

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

45 The Company doen''t have any transaction not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), unless there is immunity for disclosure under any scheme as the balance sheet date.

48 Previous year''s figures have been suitably reclassified, wherever required

49 The company''s accounting software has audit trail functionality (edit log). This feature remained operational throughout the year, capturing a chronological record of all relevant transactions processed within the software.

As per our Report of even date For and on behalf of the Board

For R A M S AND COMPANY Chartered Accountants

FRNNO 016594S ROY MAMMEN JACOB MAMMEN ASHOK KURIYAN

MANAGING DIRECTOR DIRECTOR DIRECTOR

GOVINDA RAJU JUNJURU

PARTNER MEM NO.231304

PLACE : BANGALORE MACHIMADA MUD DAP PA KUSHALAPPA MEENAKSHI RAJ

DATE:29-05-2024 CHIEF FINANCIAL OFFICER COMPANY SECRETARY

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Mar 31, 2018

Note: There are no defaults in repayment of principal or interest thereon

b) Commitments

i) Warranty on sals of products . -

30. SEGMENT REPORTING:

The Company is engaged in only manufacturing of mattresses, pillows and cushions which is considered as a single importable business segment and accordingly, primary reporting disclosures for business segments; as envisaged in Indian Accounting Standard (IND AS) 108 on ''Operating Segment is not applicable.

1. OPERATING LEASE (Ind AS II):

The Company has various operating leases for office facilities which is renewable on a periodic basis, and cancellable at its option. Rental expenses for operating leases included in the financial statements for the year are Rs, 75,04,524/- (Previous Year Rs, 67,01,402/-).

2.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES:

The entity’s principal financial liabilities comprise borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the entity’s operations to support its operations. The entity’s principal financial assets include trade and other receivables, rental and bank deposits and cash and cash equivalents that are derived directly from its operations.

The entity is exposed to market risk/credit and liquidity risks. The entity’s senior management oversee the management of these risks. The board reviews their activities. No significant derivative activities have been undertaken so far.

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 risks: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include deposits, FVTOCI investments and derivative financial instruments.

The sensitivity analyses in the following sections relate to the positions as at March 31, 2018, March 31, 2017 and April 1, 2016.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities of foreign operations. The following assumption has been made in calculating sensitivity analyses.

NOTES TO FINANCIAL STATEMENTS

The sensitivity of the relevant profit or loss item, is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018, March 31, 2017 and April 1, 2016 including the effect of hedge accounting.

3.FAIR VALUE MEASUREMENT (IND AS 113):

The Financial Instruments of the Company are initially recorded at fair value and subsequently measured at amortized cost based on the nature and timing of the cash flows.

The below table summarizes particulars of Financial Instruments used:

The Company has not classified any Financial Asset or Liabilities as measured at Fair value through Profit and Loss (FVTPL) or measured at Fair Value through Other Comprehensive Income (FVTOCI),

The Fair Value of the above financial assets and liabilities are measured at amortized cost which is considered to be approximate to their fair values.

4.Closing stock of inventory pertaining to finished products comprising of different individual products is valued on the basis of net billing price of such product. Hence, it is not possible to ascertain the financial impact due to the fact that the company has not been able to arrive at the cost price of each such product.

5. In respect of gratuity accrued, the company has not ascertained the same on actuarial basis nor provided for it in the accounts. Further the company has not ascertained accrued leave cash benefit payable to its employees. Accordingly, the company accounts both gratuity and leave encashment as and when paid.

6. Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

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Mar 31, 2016

Rights, preferences and restrictions attached to shares:

The Company has only two class of shares i.e. Preference Shares and Equity Shares.

No preference shares are issued till the date of balance sheet. The equity shares having a face value of Rs 2/- per share. Each shareholder of equity shares is entitled to one vote per share. The dividend proposed by the Board of the Directors is subject to the approval of the shareholders at the ensuing annual general meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

The Company has not declared any dividend during the year.

1. ADDITIONAL NOTES (FORMING INTEGRAL PART OF ACCOUNTS)

2. The balance in Sundry Debtors is subject to confirmations.

3. Deferred Taxation: There is no deferred tax liability during the year.

4. In the absence of any intimation received from vendors regarding the status of their registration under the “Micro, Small and Medium Enterprises Development Act 2006, the company is unable to comply with the disclosures to be made under the said Act.

5. The Company’s claim for refund of excise duty amounting to Rs 216.55 lakhs along with applicable interest till the date of refund preferred in earlier years before the Central Excise Authorities are still pending.

6. Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products’ net billing price as it not possible to ascertain cost for each such product.

7. Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

22.7 In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

22.8.Related party disclosures :

Related party disclosures as required are as given below.

List of related party

8. Public Limited Company in which some of the directors of our company are directors of that company

M/s. Balanoor Plantations & Industries Ltd.,

M/s Malayala Manorama Co. Ltd

9. Key managerial personnel

Mr. Roy Mammen - Managing Director

Mr. Mammen Philip - Director Corporate Affairs

10. The following transactions were carried out with the related party in its ordinary course of business.

With key management personnel

Remuneration paid - Managing Director Rs.16,50,000/-

Advisory fees paid- Director Corporate Affairs Rs. 2,07,000/-

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Mar 31, 2015

1. CORPORATE INFORMATION:

M M Rubber Company Ltd, (a manufacturing unit) is a Listed Company incorporated under the Companies Act. The Company's shares are listed in Bombay Stock Exchange, Madras Stock Exchange and Bangalore Stock Exchanges. The manufacturing unit of the company is situated at Ambattur Industrial Estate, Chennai. The unit manufactures foam based products such as beds, pillows etc., The Company's Sales Offices are at Bangalore, Chennai, Ernakulum, Delhi, Chandigarh, Calcutta, Mumbai, Hyderabad and Vijayawada.

2. Rights,preferences and restrictions attached to shares:

The Company has only two class of shares i.e. Preference Shares and Equity Shares.

No preference shares are issued till the date of balance sheet. The equity shares having a face value of Rs 2/- per share. Each shareholder of equity shares is entitled to one vote per share. The dividend proposed by the Board of the Directors is subject to the approval of the shareholders at the ensuing annual general meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding. x

The Company has not declared any dividend during the year.

3. ADDITIONAL NOTES (FORMING INTEGRAL PART OF ACCOUNTS)

4. The balance in Sundry Debtors is subject to confirmations.

5. Deferred Taxation: The deferred tax liability of -Rs. 65,952/- ascertained during the year in accordance with AS-22 "Accounting for Taxes on Income" issued by ICAI, ,in respect of timing difference of depreciation not provided in view of carry forward loss and unabsorbed depreciation of earlier years.

6. In the absence of any intimation received from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act 2006 the company is unable to comply with the disclosures to be made under the said Act.

7. The Company's claim for refund of excise duty amounting to Rs 216.55 lakhs along with applicable interest till the date of refund preferred in earlier years before the Central Excise Authorities are still pending.

8. Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products' net billing price as it not possible to ascertain cost for each such product.

9. Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

10. In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

11.Related party disclosures :

Related party disclosures as required are as given below.

List of related party

12. Public Limited Company in which some of the directors of our company are directors of that company

M/s. Balanoor Plantations & Industries Ltd.,

M/s Malaysia Manorama Co. Ltd

13. Key managerial personnel

Mr.Roy Mammen - Managing Director

Mr.Mammen Philip - Director Corporate Affairs

14. The following transactions were carried out with the related party in its ordinary course of business.

With key management personnel

Remuneration paid - Managing Director Rs. 14,85,000/-

Advisory fees paid- Director Corporate Affairs Rs. 2,07,000/-

15. Previous year's figures have been suitably reclassified, wherever required.

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Mar 31, 2014

NOTE NO : 1 CORPORATE INFORMATION:

M M Rubber Company Ltd, (a manufacturing unit) is a Listed Company incorporated under the Companies Act. The Company's shares are listed in Bombay Stock Exchange, Madras Stock Exchange and Bangalore Stock Exchanges. The manufacturing unit of the company is situated at Ambattur Industrial Estate, Chennai. The unit manufactures foam based products such as beds, pillows etc., The Company's Sales Offices are at Bangalore, Chennai, Ernakulum, Delhi, Chandigarh, Calcutta, Mumbai, Hyderabad and Vijayawada.

NOTE NO : 2 SHARE CAPITAL

Rights,preferences and restrictions attached to shares:

The Company has only two class of shares i.e. Preference Shares and Equity Shares.

No preference shares are issued till the date of balance sheet. The equity shares having a face value of Rs 2/- per share. Each shareholder of equity shares is entitled to one vote per share. The dividend proposed by the Board of the Directors is subject to the approval of the shareholders at the ensuing annual general meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

The Company has not declared any dividend during the year.

NOTE NO : 3 ADDITIONAL NOTES (FORMING INTEGRAL PART OF ACCOUNTS)

3.1 The balance in Sundry Debtors is subject to confirmations.

3.2 Deferred Taxation: The deferred tax liability of Rs. 1,55,789/- ascertained during the year in accordance with AS- 22 "Accounting for Taxes on Income" issued by ICAI, in respect of timing difference of depreciation not provided in view of carry forward loss and unabsorbed depreciation of earlier years.

3.3 In the absence of any intimation received from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act 2006 the company is unable to comply with the disclosures to be made under the said Act.

3.4 The Company's claim for refund of excise duty amounting to Rs 216.55 lakhs along with applicable interest till the date of refund preferred in earlier years before the Central Excise Authorities are still pending.

3.5 Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products' net billing price as it not possible to ascertain cost for each such product.

3.6 Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

3.7 In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

3.8.Related party disclosures :

Related party disclosures as required AS-18 are as given below.

List of related party

3.8.1 Public Limited Company in which some of the directors of our company are directors of that company

M/s. Balanoor Plantations & Industries Ltd., M/s Malayala Manorama Co. Ltd

3.8.2 Key managerial personnel

Mr.Roy Mammen - Managing Director Mr.Mammen Philip - Director Corporate Affairs

3.8.3 The following transactions were carried out with the related party in its ordinary course of business.

With key management personnel

Remuneration paid - Managing Director Rs.10,80,000/-

Advisory fees paid- Director Corporate Affairs Rs. 2,07,000/-

3.9 The bank guarantee have been obtained against counter guarantee

Given by the company and on the personal guarantee of Managing Director Rs.7,15,557/-

3.10 Previous year's figures have been suitably reclassified, wherever required.

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Mar 31, 2013

CORPORATE INFORMATION:

M M Rubber Company Ltd, (a manufacturing unit) is a Listed Company incorporated under the Companies Act. The Company''s shares are listed in Bombay Stock Exchange, Madras Stock Exchange and Bangalore Stock Exchanges. The manufacturing unit of the company is situated at Ambattur Industrial Estate, Chennai. The unit manufactures foam based products such as beds, pillows etc.,The Company''s Sales Offices are at Bangalore, Chennai, Emakulum, Delhi, Chandigarh, Calcutta, Mumbai, Hyderabad and Vijayawada.

1 ADDITIONAL NOTES (FORMING INTEGRAL PART OF ACCOUNTS)

1.1 The balance in Sundry Debtors is subject to confirmations.

1.2 Deferred Taxation: The deferred tax liability of Rs. 1,73,472/- ascertained during the year in accordance with AS- 22 "Accounting for Taxes on Income" issued by ICAI, ,in respect of timing difference of depreciation not provided in view of carry forward loss and unabsorbed depreciation of earlier years.

1.3 In the absence of any intimation received from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act 2006 the company is unable to comply with the disclosures to be made under the said Act.

1.4 The Company''s claim for refund of excise duty amounting to Rs 216.55 lakhs along with applicable interest till the date of refund preferred in earlier years before the Central Excise Authorities are still pending.

1.5 Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products'' net billing price as it not possible to ascertain cost for each such product.

1.6 Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

1.7 In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

1.8 Related party disclosures :

Related party disclosures as required AS-18 are as given below. List of related party

1.8.1 Public Limited Company in which some of the directors of our company are directors of that company

M/s. Balanoor Plantations & Industries Ltd., M/s Malayala Manorama Co. Ltd

1.8.2 Key managerial personnel

Mr. Roy Mammen - Managing Director Mr.Mammen Philip - Director Corporate Affairs

1.8.3 The following transactions were carried out with the related party in its ordinary course of business.

With key management personnel

Remuneration paid - Managing Director Rs.8,40,000/-

Advisory fees paid- Director Corporate Affairs Rs. 2,07,000/-

1.9 Previous year''s figures have been suitably reclassified, wherever required.

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Mar 31, 2012

1.1 The balance in Sundry Debtors is subject to confirmations.

1.2 Deferred Taxation:The deferred tax liability of Rs. 178511/- ascertained during the year in accordance with AS-22 "Accounting for Taxes on Income" issued by ICAI, in respect of timing difference of depreciation not provided in view of carry forward loss and unabsorbed depreciation of earlier years.

1.3 In the absence of any intimation received from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act 2006 the company is unable to comply with the disclosures to be made under the said Act.

1.4 The Company's claim for refund of excise duty amounting to Rs 216.55 lakhs along with applicable interest till the date of refund preferred in earlier years before the Central Excise Authorities are still pending.

1.5 Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products' net billing price as it not possible to ascertain cost for each such product.

1.6 Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ' ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

1.7 The Employees benefit consists of contribution by the employer to the provident fund and gratuity fund. Both the benefits are considered as Long Term Benefits to the employees and company discharges its liability under provident fund benefit by accounting contribution to the provident fund scheme operated by the Government under Statutory Employees Provident Fund & Miscellaneous Provisions Act and the Scheme framed there under.

In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

1.8 Related party disclosures :

Related party disclosures as required AS-18 are as given below.

List of related party

1.8.1 Public Limited Company in which some of the directors of our company are directors of that company

M/s. Balanoor Plantations & Industries Ltd.,

M/s Malayala Manorama Co Ltd

1.8.2 Key managerial personnel

Mr.Roy Mammen - Managing Director Mr.Mammen Philip - Director Corporate Affairs

1.8.3 The following transactions were carried out with the related party in its ordinary course of business.

With key management personnel

Remuneration paid - Managing Director Rs.7,65,000/-

Advisory fees paid- Director Corporate Affairs Rs. 2,07,000/-

1.8.4 The bank guarantee have been obtained against counter guarantee given by the company and on the personal guarantee of Managing Director

1.8.5 Previous year's figures have been suitably reclassified, wherever required.

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Mar 31, 2011

1.1 The balance in Sundry Debtors, Sundry Creditors, Loans & Advances are subject to confirmations.

2.2 Deferred Taxation: The deferred tax liability of Rs. 1,53,000 ascertained during the year in accordance with AS-22 "Accounting for Taxes on Income" issued by ICAI, ,in respect of timing difference of depreciation not provided in view of carry forward loss and unabsorbed depreciation of earlier years.

2.3 In the absence of any intimation received from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act 2006 the company is unable to comply with the disclosures to be made under the said Act.

2.4 During the year company has preferred a claim for refund of Rs 216.55 lakhs before the Central Excise Authorities consequent on judgments in favor of the company by the Central Excise Tribunal and such claim are pending.

2.5 Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products' net billing price without ascertaining the cost pertaining to each of such product.

2.6 Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

2.7 The Employees benefit consists of contribution by the employer to the provident fund and gratuity fund. Both the benefits are considered as Long Term Benefits to the employees and company discharges its liability under provident fund benefit by accounting contribution to the provident fund scheme operated by the Government under Statutory Employees Provident Fund & Miscellaneous Provisions Act and the Scheme framed there under.

In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

2.7.1 During the year Rs 41.49 lakhs incurred in respect of development and launching of new products are deferred to be written off equally over period of next five years

2.8 Related party disclosures :

Related party disclosures as required AS-18 are as given below. List of related party

2.8.1 Public Limited Company in which some of the directors of our company are directors of that company

M/s. Balanoor Plantations & Industries Ltd.,

M/s Malayala Manorama Co Ltd

2.8.2 Key managerial personnel

Mr. Roy Mammen - Managing Director

Mr. Mammen Philip - Director Corporate Affairs

2.8.3 The following transactions were carried out with the related party in its ordinary course of business. With key management personnel

Remuneration paid - for details refer clause 2.10

2.9 Additional particulars required to be furnished as per Amendments to Part II of Schedule VI to the Companies Act, 1956 (As certified by the Management)

2.11 The bank guarantee have been obtained against counter guarantee given by the company and on the personal guarantee of Managing Director Rs.715557/-

2.12 Previous year's figures have been suitably reclassified, wherever required.

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Mar 31, 2010

1.1 The balance in Sundry Debtors , Sundry Creditors , Loans & Advances are subject to confirmations.

1.2 Deferred Taxation: The deferred tax liability of Rs. 1,80,000/- ascertained during the year in accordance with AS-22 "Accounting for Taxes on Income" issued by ICAI, in respect of timing difference of depreciation not provided in view of carry forward loss and unabsorbed depreciation of earlier years.

1.3 In the absence of any intimation received from vendors regarding the status of their registration under the "Micro, Small and Medium Enterprises Development Act 2006 the company is unable to comply with the disclosures to be made under the said Act.

1.4 During the year company has preferred a claim for refund of Rs 216.55 lakhs before the Central Excise Authorities consequent on judgments in favor of the company by the Central Excise Tribunal and such claim is pending.

1.5 Closing Stock of inventory pertaining to finished products comprising of different individual products is valued at such products net billing price without ascertaining the cost pertaining to each of such product.

1.6 Company is in the process of ascertaining of the impairment, if any, on any of the fixed assets and subject to such ascertainment, no recognition during the year is made in the accounts for impairment of fixed assets.

1.7 The Employees benefit consists of contribution by the employer to the provident fund and gratuity fund. Both the benefits are considered as Long Term Benefits to the employees and company discharges its liability under provident fund benefit by accounting contribution to the provident fund scheme operated by the Government under Statutory Employees Provident Fund & Miscellaneous Provisions Act and the Scheme framed there under.

In respect of gratuity accrued the company has not ascertained or provided in the accounts. Further company has not ascertained accrued leave cash benefits payable to its employees. The company accounts both gratuity and leave encashment as and when paid.

1.8 Related party disclosures :

Related party disclosures as required AS-18 are as given below. List of related party

1.8.1 Public Limited Company in which some of the directors of our company are directors of that company M/s. Balanoor Plantations & Industries Ltd.,

M/s. Devon Plantations and Inds Ltd., M/s. Malayala Manorama Co. Ltd.

1.8.2 Key managerial personnel

Mr. Roy Mammen - Managing Director

Mr. Mammen Philip - Director Corporate Affairs

1.8.3 The following transactions were carried out with the related party in its ordinary course of business. With key management personnel

Remuneration paid - for details refer clause 4

1.9 Additional particulars required to be furnished as per Amendments to Part II of Schedule VI to the Companies Act, 1956 (As certified by the Management)

C. QUANTITATIVE DETAILS OF PRODUCTION, SALES AND STOCK

The company produces and sells foam products of different sizes which are not of common measurement or weight. Hence quantitative particulars of sales, Opening and Closing Stock are not given. However, production of quantity in terms of Nos is as under.

1.10 The bank guarantee have been obtained against counter guarantee

given by the company and on the personal guarantee of Managing Director Rs.715557/=

1.11 Previous years figures have been suitably reclassified, wherever required.