Notes to Accounts of MPL Plastics Ltd.

Mar 31, 2024

2.13 PROVISIONS, CONTINGENT LIABILITY AND CONTINGENT ASSET:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.

When the Company expects part or entire provision to be reimbursed, the same 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.

A Contingent Liability is a possible obligation that arises from past events and 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 enterprise or a present obligation
that arises from past events that may, but probably will not, require an outflow of resources.

Both provisions and contingent liabilities are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.
Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the
Financial Statements.

2.14 SEGMENT REPORTING:

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The
Board of Director of the Company has been identified as being the Chief Operating Decision Maker (CODM) by the management of the
Company.

As the Company''s business activity falls within a single business segment viz., ‘Thermoware Products'' and the sales and jobwork/
processing substantially being in the domestic market, the financial statements are reflective of the information required by Accounting
Standard 108 “Segment Reporting”, notified under the Companies (Indian Accounting Standards) Rules, 2015.

2.15 EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year
are adjusted for events including a bonus issue, bonus element in right issue to existing shareholders, share split and reverse share split
(consolidation of shares).

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

2.16 CASH AND CASH EQUIVALENT:

Cash and cash equivalent for the purpose of Cash Flow Statement comprise cash at bank and in hand and short term highly liquid
investments which are subject to insignificant risk of changes in value.

2.17 CASH FLOW STATEMENT:

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

The Company provides a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from
financing activities including both changes arising from cash flows and non cash changes.

2.18 COMMITMENTS:

Commitments are future liabilities for contractual expenditure. The commitments are classified and disclosed as follows:

(a) The estimated amount of contracts remaining to be executed on capital account and not provided for; and

(b) Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of the Management.

2.19 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS:

The preparation of Financial Statements is in conformity with the recognition and measurement principles of Ind AS which requires
the management to make judgements for estimates and assumptions that affect the amounts of assets, liabilities and the disclosure of
contingent liabilities on the reporting date and the amounts of revenues and expenses during the reporting period and the disclosure
of contingent liabilities. Differences between actual results and estimates are recognized in the period in which the results are known/
materialize.

Estimates Assumptions and Judgements:

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that
are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most
significant effect on the amounts recognised in the financial statements:

a) Estimation of current tax expense and deferred tax:

The calculation of the Company''s tax charge necessarily involves a degree of estimation and judgement in respect of certain items
whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate,
through a formal legal process. The final resolution of some of these items may give rise to material profits/losses and/or cash flows.
Significant judgments are involved in determining the provision for income taxes, including amount expected to be paid/recovered
for uncertain tax positions.

b) Recognition of deferred tax assets/ liabilities:

The recognition of deferred tax assets/ liabilities is based upon whether it is more likely than not that sufficient and suitable taxable
profits will be available in the future against which the reversal of temporary differences can be deducted. To determine the future
taxable profits, reference is made to the latest available profit forecasts.

c) Estimation of Provisions and Contingent Liabilities:

The Company exercises judgement in measuring and recognising provisions and the exposures to contingent liabilities which is
related to pending litigation or other outstanding claims. Judgement is necessary in assessing the likelihood that a pending claim will
succeed, or a liability will arise, and to quantify the possible range of the financial settlement. Because of the inherent uncertainty in
this evaluation process, actual liability may be different from the originally estimated as provision.

d) Estimated useful life of Property, Plant and Equipment:

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic
depreciation is derived after determining an estimate of an asset''s expected useful life, its expected usage pattern and the expected
residual value at the end of its life. The useful lives, usage pattern and residual values of Company''s assets are determined by
management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based
on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in
technology etc.

e) Estimation of Provision for Inventory:

The Company writes down inventories to net realisable value based on an estimate of the realisability of inventories. Write downs
on inventories are recorded where events or changes in circumstances indicate that the carrying value may not be realised. The
identification of write-downs requires the use of estimates of net selling prices of the down-graded inventories. Where the expectation
is different from the original estimate, such difference will impact the carrying value of inventories and write-downs of inventories in
the periods in which such estimate has been changed.

f) Estimation of Defined Benefit Obligation:

The present value of the defined benefit obligations depends on a number of factors that are determined on an actuarial basis
using a number of assumptions. The assumptions used in determining the net cost (income) for post-employment plans include the
discount rate. Any changes in these assumptions will impact the carrying amount of such obligations.

The Company determines the appropriate discount rate at the end of each year. This is the interest rate that should be used to
determine the present value of estimated future cash outflows expected to be required to settle the defined benefit obligations. In
determining the appropriate discount rate, the Company considers the interest rates of government bonds of maturity approximating
the terms of the related plan liability.

g) Estimated fair value of Financial Instruments:

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The
Management uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions
existing at the end of each reporting period.

d Credit risk

Credit risk is the risk that counterparty 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 from its financing activities,
including deposits with banks and other financial instruments.

e Trade Receiveble

Customer credit risk is managed by SCM team subject to the company''s established policy, procedures and control relating to customer
credit risk management. However, the Company does not have any outstanding customer receivables as at the year end.

f Financial instruments and cash deposits

Credit risk from balances with banks is managed by the Company in accordance with the Company''s policy. Investments of surplus funds
are made only with approved counterparties and within credit limits assigned to each counterparty. The limits are set to minimise the
concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

g Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The
Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company
closely monitors its liquidity position and its management. It maintains adequate source of financing through the use of bank deposits and
other avenues. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s
liquidity position through rolling forecasts on the basis of expected cash flows and accordingly, mitigate liquidity risk.

*Writ petitions filed by the Company before the Hon''ble High Court of Bombay disputing the Customs duty liability and applicable rate of
customs duty on raw materials imported for own consumption as well as sale on high seas basis are pending adjudication. The Company
has furnished to Customs Authority a bank guarantee of Rs. 19.35 lakhs (As at 31st March, 2023: Rs.19.35 lakhs) in respect of imported
raw material sold on high seas, against which the Company had received advances from customers of Rs. 10.34 lakhs (As at 31st March,
2023: Rs.10.34 lakhs). The Company has not accounted liability on this account.

**A. There is no contingent liability as on 31.03.2024. There were assessments of earlier years which were contested by the Company at the
Income Tax Appellate Tribunal (ITAT). The Company has received orders from Hon. ITAT in its favour and all liabilities associated with
these cases have been extinguished and there are no liabilities reflected on the Income Tax portal.

B. Potential Future Contingent Liability

For the cases decided in favour of the Company at the Hon. ITAT level, the Income Tax Department has preferred appeal before the Hon.
Mumbai High Court. The ongoing litigation cases as mentioned in table below are currently pending in Mumbai High Court.

26. Legal proceedings:

(i) An order passed by the Commissioner of Central Excise creating demand of Rs. 334.79 lakhs (As at 31⁵¹ March, 2023: Rs. 334.79
lakhs) against the Company was set aside by the Hon''ble Central Excise and Service Tax Appellate Tribunal (CESTAT) and on
an appeal filed by the Excise Department in the matter before the Hon''ble High Court of Bombay was disposed by the Hon''ble
High Court of Bombay by remanding the same to the Adjudicating Authority for deciding it afresh. The matter had come before
Commissioner for remand proceedings and Company requested for considering documents submitted and to rely on the same. The
matter is pending at adjudication stage under remand proceedings.

(ii) An order passed by the learned Joint Commissioner of Central Excise whereby a demand of Rs. 36.14 lakhs (i.e. excise duty of Rs.
18.07 lakhs and penalty of Rs. 18.07 lakhs) was raised, which was set aside by Commissioner (Appeals). The matter was taken
up in appeal by department before Hon''ble Central Excise and Service Tax Appellate Tribunal and the department''s appeal was
dismissed upholding the setting aside of the demand. The excise department has now preferred an appeal before Hon''ble High
Court of Bombay, and is pending for disposal.

*The Company had made provision of Rs. 64.20 lakhs towards Property Tax payable for Pune manufacturing plant of the Company,
The Company had paid Rs. 21.32 lakhs on 23.10.2023 towards proportionate recovery of Property tax as full and final settlement of the
amount and excess provision for property tax liability of Rs. 42.88 lakhs has been written back during the year.

28. The Company had loaned Rs. 50.00 lakhs to Khazana Tradelinks Pvt. Ltd. (“the Borrower”) in F.Y. 2002-03. The Borrower had issued
confirmation of loan upto F.Y. 2011-12. On demand, the Borrower informed that they had adjusted the entire loan amount borrowed by
them from the Company against consideration for sale of preference shares of Milton Securities Ltd. sold by Khazana Tradelinks Pvt. Ltd.
to the Company without Company''s knowledge and consent. The Company has disputed the arbitrary adjustment of loan repayable by
Khazana Tradelinks Pvt. Ltd. to the Company as preference shares of Milton Securities Ltd.. The transactions for preference shares and
adjustment of loan amount have been carried out unilaterally by the Borrower and without the consent of the Company. The Company had
claimed the amount of loan with interest at 18% p.a. thereon, and challenged and initiated the action against Borrower and its Directors
as the same was done on the basis of forged and fabricated documents. The amount of Rs. 50.00 lakhs is carried forward in the books
of account of the Company as doubtful of recovery.

29. The Company advanced an interest bearing inter corporate deposits of Rs. 171.21 lakhs to Pathmaker Finance Ltd. (“the Borrower”) in
F.Y. 1997-98. The Company sought confirmation of inter corporate deposit from the Borrower during FY 2017-18, which was denied by
the Borrower. The Company had sent a legal notice to the Borrower dated 05.10.2018 recalling inter corporate deposit and refund thereof
from the Borrower, which is followed by further legal notices to the Borrower dated 18.02.2020 and 24.11.2020 seeking refund of inter
corporate deposit. The entire amount of loan is carried forward in books of account of the Company as doubtful of recovery.

30. The Company is holding Preference Shares of Indo Wind Energy Ltd., and is entitled to redemption proceeds thereof and dividend
thereon, alongwith certain additional entitlements, all with upto the value date of payment along with interest. The Company will account
income in respect of its aforesaid additional entitlements and interest on recovery.

Interest risk: A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the
return on the plan debt investments.

Longevity risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of
plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s
liability.

Salary risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such,
an increase in the salary of the plan participants will increase the plan''s liability.

32. Segment information for primary segment reporting (by business segments):

Based on guiding principles given in the Indian Accounting standard on ‘Operating Segments'' (Ind AS-108), the primary segment of the
Company is business segment, which comprises of Thermoware Products. As the Company has closed its manufacturing operations, no
segmental information is required to be given.

Segment information for secondary segment reporting (by geographical segments)

The Company has closed its manufacturing operations and the export turnover being NIL, i.e., below 10% of the total turnover of the
Company, there is no reportable geographical segment.

36. During the year the company sold its factory land and building & warehouse at Pune after completion of due diligence by the buyer and
obtaining necessary permissions and finalizing of terms of sale. The realization from above were utilized by the Company to meet its
outstanding liabilities.

37. The Company''s financial statements were authorized for issue in accordance with a resolution of the Board of Directors passed on 24^th
May 2024 in accordance with the provisions of the Companies Act, 2013 and are subject to the approval of the shareholders at the
ensuing Annual General Meeting.

38. The Company has elected to exercise an option permitted u/s 115BAA of the Income-tax Act, 1961. Accordingly, current tax and deferred
tax, if any, for the year ended 31st March, 2024 reflect changes as per the rate of income tax prescribed in the said section.

39. The Company has closed down its operations at Silvassa & Pune plant during the year. The Company''s manufacturing operations had
stopped completely since plant & machinery, Land, Land & Building, Warehouse at Pune has been sold during the year. There exists
material uncertainty that may cast significant doubt on the Company''s ability to continue as a going concern.

The Board of the Company vide its meeting dated 8^th March, 2022 and 11^th April,2022 and shareholders of the Company through postal
ballot on 14^th April, 2022 had already approved a special resolution for initiation of corporate insolvency resolution process under the
provisions of the Code and applicable provisions.

40. The Company has not traded or invested in Crypto currency or Virtual currency during the year ended on March 31,2024.

41. ‘The Company has not declared any undisclosed income under tax assessment under the Income-tax Act, 1961 during the year

42. The Company is not declared wilful defaulter by any bank/financial institution/other lender.

43. With effect from 1st April 2023, as per proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 , every company which uses an
accounting software for maintaining its books of accounts, should only use such an accounting software which has a feature of recording
audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such
changes was made and ensuring that the same has been operated throughout the year for all transactions recorded in the software and
the audit trail feature cannot be disabled or tampered with and that the audit trail has been preserved by the company as per the statutory
requirements for record retention.

Accordingly, the Company has used an accounting software with an audit trail feature for maintaining its books and accounts for the
financial year ended 31st March 2024 and complied with the provisions of the Companies (Accounts) Rules, 2014.

44. Previous year''s figures have been regrouped/re-arranged wherever necessary in order to conform to those of the Current Year.

45. The amounts in the financial statements are rounded off to the nearest rupee in lakhs, unless otherwise indicated.

Signatures to Notes to Financial Statements 1 to 45

As per our attached report of even date

For Jain Vinay And Associates For and on Behalf of the Board

Chartered Accountants MPL Plastics Limited

Firm Registration No. 006649W

Vishnu Kumar Sodhani M. B. Vaghani M. B. Bhaya Devendra Negi Vishakha Jain

Partner Wholetime Director C F O Director Company Secretary and

Membership No. : 403919 (DIN:00067115) (DIN:00727105) Compliance Officer

ACS-A54275

Place : Thane Place : Thane

Date : 24th May, 2024 Date : 24th May, 2024

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Mar 31, 2015

1. Estimaated amount of contracts remaining to be executed on capital account and not provided Rs. Nil. (Previous year Rs.Nil)

The demands at (b) and (c) above are payable with interest in case upheld against the Company.

The Company is contingently liable for excise duty of Rs.45,993,252/-, which demands were set aside by Central Excise and Service Tax Appellate Tribunal and appeals in respect whereof filed by Excise Department are pending before jurisdictional High Courts.

2. The Company's writ petitions before the High Court of Bombay disputing the Customs duty liability and applicable rate of customs duty on imported raw materials (for own consumption as well as sale on high seas basis) is pending disposal. Against this disputed liability the Company has furnished to the Customs Authority bank guarantee totaling Rs.1,957,376/- (previous year Rs.1,957,376/-). In respect of imported raw material sold on high seas basis there are advances received by the Company of Rs.1,033,628/- (Previous Year Rs.1,033,628/-) from the constituents towards the likely custom duty liability.

3. Registration of the Company with Board for Industrial and Financial Reconstruction(BIFR):

The Company was declared a sick industrial undertaking in terms of Section 3(1)(0) of the Sick Industrial Companies (Special Provisions) Act, 1985.

The Company had submitted a Draft Rehabilitation Scheme to Hon'ble BIFR through its Operating Agency IFCI Ltd. and is providing the required information and clarification.

The Company continues its manufacturing operations, and the accounts are prepared on going concern basis.

4. Borrowings from Banks and Term Lenders:

1. Restructuring by Standard Chartered Bank (SCB):

The Company's proposal for restructuring of borrowings was approved by SCB (member of consortium of lenders) in 2002. The liability of SCB in accordance with the aforesaid sanction was recognized in books of account of the Company. The Company has been amortizing borrowings in accordance with restructuring scheme as sanctioned by SCB. During the year the restructured liability has been repaid.

2. Working capital borrowings from Dena Bank (DB):

The Company had completed payment of one time settlement amount to Dena Bank except affect of release of a bank guarantee issued by Dena Bank on behalf of the Company for Rs.751,257/- (Rs.751,257/-) has yet to be given by the said Bank. The Company will give effect to the settlement on completion of consequential formalities by Dena Bank and release of charge over assets of the Company held by Dena Bank.

3. Acquisition of debts by Itz Online Payments Limited (IOPL):

IOPL acting as Strategic Investor in the revival and rehabilitation plan of the Company, settled and took over debt held by Central Bank of India (CBI) and purchased from Federal Bank Limited (FBL) the non-convertible debentures held by FBL.

5. The Company is holding Preference Shares of Indo Wind Energy Ltd., and is entitled to redemption proceeds thereof and dividend with certain additional amounts alongwith upto date interest. The Company has not accounted income in respect of its aforesaid amounts and claims.

The Company is initiating recovery measures and will account income accrued on the Preference Shares in the year of receipt.

6. As per Accounting Standard 15 "Employee benefits”, the disclosures as defined in the Accounting Standard are given below: Defined Contribution Plans

Contribution to Defined Contribution Plans, recognised as expense for the year is as under :

Defined Benefit Plan

The employee's gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for part of the organization) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

7. The entire operation of the Company relates to only one segment viz. Thermoware Products. Hence as per AS(17) issued by ICAI, there is only one reportable segment.

8. The Company has not yet identified the total amount due to micro, small and medium scale enterprises.

9. The Basic Earning per share of the Company is Rs. 0.91 as defined in Accounting Standard 20 issued by ICAI.

10. The Company does not have any deferred tax liability as envisaged in Accounting standard 22 issued by the ICAI.

11. Sundry Creditors and Sundry Debtors are subject to confirmation by the respective parties.

12. Figures of the previous year have been regrouped and reclassified wherever necessary.

13. The amounts in the Balance Sheet & Statement of Profit & Loss are rounded off to the nearest rupee.

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Mar 31, 2014

1. Estimated amount of contracts remaining to be executed on capital account and not provided Rs. Nil. (Previous year Rs.Nil)

2. Contingent Liability in respect of: ASAT31ST ASAT31ST

MARCH.2014 MARCH.2013 RUPEES IN LACS RUPEES IN LACS

(a) Guarantee issued by Banks in favour of 25.16 25.16 various Central & State Government Department and Local Bodies.

(b) Demands under Excise Act, 2.83 2.83 disputed in appeal.

(c) Demands under Income Tax Act, 247.27 260.40 disputed in appeal.

The demands at (b) and (c) above are payable with interest in case upheld against the Company.

The Company is contingently liable for excise duty of Rs.45,993,252/-, which demands were set aside by Central Excise and Service Tax Appellate Tribunal and appeals in respect whereof filed by Excise Department are pending before jurisdictional High Courts.

3. The Company''s writ petitions before the High Court of Bombay disputing the Customs duty liability and applicable rate of customs duty on imported raw materials (for own consumption as well as sale on high seas basis) is pending disposal. Against this disputed liability the Company has furnished to the Customs Authority bank guarantee totaling Rs. 1,957,376/- (previous year Rs. 1,957,376/-). In respect of imported raw material sold on high seas basis Vr - „ ; re advances received by the Company of Rs. 1,033,628/- (Previous Year Rs. 1,033.628/-) from the constituents towards th<-> < custom duty liability.

4. Extraordinary Items:

Extraordinary Items consists of following:

Excess of Provision Written Back (Net) Rs. 61,773,977/-

The lease in respect of wind mills was terminated by the lessor, and income was carried by the Company from sale of electricity thereafter. The Company on discovering certain facts during the year, has since reversed excessive debit and credit side provisions made in its books of account in earlier years, and considers the net amount of Rs.2,399,167/- recoverable from the Guarantor of the transaction, which will be accounted in the year of recovery thereof.

5. Registration of the Company with Board for Industrial and Financial Reconstruction(BIFR):

The Company was declared a sick industrial undertaking in terms of Section 3(1 )(0) of the Sick Industrial Companies (Special Provisions) Act, 1985.

The Company had submitted a Draft Rehabilitation Scheme to Hon''ble BIFR through its Operating Agency IFCI Ltd and is providing the required information and clarification.

The Company continues its manufacturing operations, and the accounts are prepared on going concern basis.

6. Borrowings from Banks and Term Lenders:

1. Restructuring by Standard Chartered Bank (SCB):

The Company''s proposal for restructuring of borrowings was approved by SCB (member of consortium of lenders) in 2002. The liability of SCB in accordance - h the aforesaid sanction was recognized in books of account of the Company. The Company is amortizing borrowings ;ii accordance with restructuring scheme as sanctioned by SCB.

2. Recall of working capital facilities by Dena Bank (DB):

The Company has completed payment of one time settlement amount to Dena Bank. The Company will give effect to the settlement on completion of consequential formalities by Dena Bank and release of charge over assets of the Company held by Dena Bank.

3. Assignment of Debts by Central Bank of India (CBI) to ltz Online Payments Limited (IOPL):

IOPL acting as Strategic Investor in the revival and rehabilitation plan of the Company, settled and took over debt held by CBI. Accordingly, borrowings of the Company from CBI now stand towards IOPL.

4. Transfer of Non-Convertible Debentures by The Federal Bank Limited (FBL) to Itz Online Payments Limited (IOPL):

IOPL, the Strategic Investor investing in the revival and rehabilitation plan of the Company, purchased from FBL the non- convertible debentures held by FBL, which have since been transferred in the name of IOPL following due process.

7. The Company is holding Preference Shares of Indo Wind Energy Ltd., and is entitled to redemption proceeds thereof and dividend with certain additional amounts alongwith upto date interest. The Company has not accounted income in respect of its aforesaid amounts and claims.

The Company is initiating recovery measures and will account income accrued on the Preference Shares in the yearof receipt.

8. As per Accounting Standard 15 "Employee benefits", the disclosures as defined in the Accounting Standard are given below:

Defined Contribution Plans

Contribution to Defined Contribution Plans, recognised as expense for the year is as under: Particulars 2013-14 2012-13

Employer''s Contribution to Provident Fund 218,333 189,145

Employer''s Contribution to Pension Fund 218,926 182,961

Defined Benefit Plan

The employee''s gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for part of the organization) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

9. RELATED PARTY DISCLOSURE AS PER (AS-18) ISSUED BY ICAI:-

(a) List of Related Parties with whom transactions have taken place and Relationships: Sr. No. Name of the Related Party Relationship

1. Shri Chiranjiv I. Vaghani Key Management Personnel

2. Shri Madhup B. Vaghani — Do —

3. ShriDinesh I. Vaghani Relatives of Directors

4. ShriNilesh I.Vaghani —Do—

10. The Company has not yet identified the total amount due to micro, small and medium scale enterprises.

11. The Basic Earning per share of the Company is Rs.4.05 as defined in Accounting Standard 20 issued by ICAI.

12. The Company does not have any deferred tax liability as envisaged inAccounting standard 22 issued by the ICAI.

13. Sundry Creditors and Sundry Debtors are subject to confirmation by the respective parties.

14. Figures of the previous year have been regrouped and reclassified wherever necessary.

15. The amounts in the Balance Sheet & Statement of Profit & Loss are rounded off to the nearest rupee.

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Mar 31, 2013

1. Estimated amount of contracts remaining to be executed on capital account and not provided Rs. Nil. (Previous year Rs.Nil)

2. The Company''s writ petitions before the High Court of Bombay disputing the Customs duty liability and applicable rate of customs duty on imported raw materials (for own consumption as well as sale on high seas basis) is pending disposal. Against this disputed liability the Company has furnished to the Customs Authority bank guarantee totaling Rs. 19,57,376/- (previous year Rs.19,57,376/-). In respect of imported raw material sold on high seas basis there are advance recoveries made by the Company of Rs. 10,33,628/- (Previous Year Rs. 10,33,628/-) from the constituents towards the likely custom duty liability.

3. Extraordinary Items:

Extraordinary Items consists of following:

Waiver of Principal-Interest on OTS with IFCIL Rs. 421,820,549/-

During F.Y. 2009-10, the Company had entered into One Time Settlement (OTS) with IFCIL. In terms thereof the OTS amount of Rs.290 Lacs as full and final settlement of total outstanding dues towards Corporate Loan and outstanding interest was payable in instalments upto December, 2011. The Company had accordingly fully repaid the amount during F.Y.2011-12. However, IFCIL has acknowledged the same by issuing no dues certificate in the current year. In terms of the OTS, the Company has given effect of the waiver allowed by IFCIL in the accounts on obtaining the no dues certificate and the write back on such waiver is accounted as income from Extra Ordinary item which amounts to Rs.421,820,549/-.

4. Registration of the Company with Board for Industrial and Financial Reconstruction(BIFR):

The Company was declared a sick industrial undertaking in terms of Section 3(1 )(0) of the Sick Industrial Companies (Special Provisions) Act, 1985.

The Company has submitted a Draft Rehabilitation Scheme to Hon''ble BIFR through its Operating Agency IFCI Ltd. on 22nd Feb, 2013.

The Company continues its manufacturing operations, and the accounts are prepared on going concern basis.

5. Borrowings from Banks and Term Lenders:

1. Restructuring by Standard Chartered Bank (SCB):

The Company''s proposal for restructuring of borrowings was approved by SCB (member of consortium of lenders) in 2002. The liability of SCB in accordance with the aforesaid sanction was recognized in books of account of the Company. The Company is amortizing borrowings in accordance with restructuring scheme as sanctioned by SCB.

2. Recall of working capital facilities by Dena Bank (DB):

The Company has completed payment of one time settlement amount to Dena Bank. The Company will give effect to the settlement on completion pf consequential formalities by Dena Bank and release of charge over assets of the Company held by Dena Bank.

3. Assignment of Debts by Central Bank of India (CBI) to Itz Online Payments Limited (IOPL):

IOPL acting as Strategic Investor in the revival and rehabilitation plan of the Company, settled and took over debt held by CBI. Accordingly, borrowings of the Company from CBI is now stated towards IOPL.

4. Transfer of Non-Convertible Debentures by The Federal Bank Limited (FBL) to Itz Online Payments Limited (IOPL):

IOPL, the Strategic Investor investing in the revival and rehabilitation plan of the Company, purchased from FBL the non- convertible debentures held by FBL.

The amount in terms of debentures is now owed by the Company to IOPL. The Company is taking steps to amend terms of Debentures to enable their transferability in favour of IOPL.

6. The entire operation of the Company relates to only one segment viz. Thermoware Products. Hence as per AS(17) issued by ICAI, there is only one reportable segment.

7. The Company has not yet identified the total amount due to micro, small and medium scale enterprises.

8. The Basic Earning per share of the Company is Rs. 32.22 as defined in Accounting Standard 20 issued by ICAI.

9. The Company does not have any deferred tax liability as envisaged inAccountingstandard22issuedbythelCAI.

10. Sundry Creditors and Sundry Debtors are subject to confirmation by the respective parties.

11. Figures of the previous year have been regrouped and reclassified wherever necessary.

12. The amounts in the Balance Sheet & Statement of Profit & Loss are rounded off to the nearest rupee.

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Mar 31, 2012

1. Estimated amount of contracts remaining to be executed on capital account and not provided Rs. Nil. (Previous year Rs.Nil)

2. Contingent Liability in respect of: ASAT31ST ASAT31ST MARCH,2012 MARCH,2011 RUPEES IN RUPEES IN LACS LACS

(a) Guarantee issued by Banks in favour of various Central & State Government Department and Local Bodies. 25.16 24.06

(b) Demands under Excise Act, disputed in appeal. NIL 635.89

(c) Demands under Income Tax Act, disputed in appeal. 89.96 89.96

The demands at (c) above are payable with interest in case upheld against the Company.

The Company is contingently liable for excise duty of Rs.4,59,93,252/-, which demands were set aside by Central Excise and Service TaxAppellateTribunal and appeals in respect whereof are pending before jurisdictional High Courts.

3. The Company's writ petitions before the High Court of Bombay disputing the Customs duty liability and applicable rate of customs duty on imported raw materials (for own consumption as well as sale on high seas basis) is pending disposal. Against this disputed liability the Company has furnished to the Customs Authority bank guarantee totaling Rs. 19,57,376/- (previous year Rs. 19,57,376/-). In respect of imported raw material sold on high seas basis there are advance recoveries made by the Company of Rs. 10,33,628/- (Previous Year Rs. 10,33,628/-) from the constituents towards the likely custom duty liability.

(a) During the year the Company entered into One Time Settlement (OTS) with GIC on 12th August, 2011. In terms thereof the OTS amount of Rs.45 Lacs as full and final settlement of total outstanding dues towards Short Term Loan and outstanding interest was payable in three equal monthly instalments. The Company has accordingly paid the amount and GIC has acknowledged the same by issuing no dues certificate. In terms of the OTS, the Company has given effect of the waiver allowed by GIC in the accounts and the write back on such waiver is accounted as income from Extra Ordinary item which amounts to Rs.218,093,107/-.

4. Registration of the Company with Board for Industrial and Financial Reconstruction(BIFR):

The Company was declared a sick industrial undertaking in terms of Section 3(1 )(0) of the Sick Industrial Companies (Special Provisions) Act, 1985.

The Company has submitted a Draft Rehabilitation Scheme to IFCI Ltd., the Operating Agency, for their review and onward submission to the Hon'ble BIFR.

The Company continues its manufacturing operations, and the accounts are prepared on going concern basis.

5. Borrowings from Banks and Term Lenders:

1. Restructuring by Standard Chartered Bank (SCB):

The Company's proposal for restructuring of borrowings was approved by SCB (member of consortium of lenders) in 2002. The liability of SCB in accordance with the aforesaid sanction was recognized in books of account of the Company. The Company is amortizing borrowings in accordance with restructuring scheme as sanctioned by SCB.

2. Recall of working capital facilities by Dena Bank (DB):

The Company has completed payment of one time settlement amount to Dena Bank . The Company will give effect to the settlement on completion of consequential formalities by Dena Bank and release of charge over assets of the Company held by Dena Bank.

3. Assignment of Debts by Central Bank of India (CBI) to Itz Online Payments Limited (IOPL):

IOPL acting as Strategic Investor in the revival and rehabilitation plan of the Company, settled and took over debt held by CBI. Accordingly, borrowings of the Company from CBI is now stated towards IOPL.

4. Settlement of dues of IFCt Limited (IFCIL):

The Company has completed payment of one time settlement amount to IFCIL. The Company will give effect to the settlement on completion of consequential formalities by IFCIL and release of charge over assets of the Company held by IFCIL.

5. Recovery Application of The Federal Bank Limited (FBL):

Pursuant to non payment by the Company of the amount payable on redemption of non-convertible debentures, FBL has filed an application for recovery before the Debt Recovery Tribunal situated at Chennai. The DRT passed an order dated 31st December, 2002 for issue of a Recovery Certificate for a total sum of Rs. 2,86,79,344/- alongwith interest.

The Company is in negotiations with FBLfor settlement of the outstanding dues.

Pending settlement discussions with FBL, the Company has accounted for interest liability as per contracted rate of interest.

Defined Benefit Plan

The employee's gratuity fund scheme managed by a Trust (Life Insurance Corporation of India for part of the organization) is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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

6. The entire operation of the Company relates to only one segment viz. Thermoware Products. Hence as perAS(17) issued by ICAI, there is only one reportable segment.

7. The Company has not yet identified the total amount due to micro, small and medium scale enterprises.

8. The Basic Earning per share of the Company is Rs. 4.17 as defined in Accounting Standard 20 issued by ICAI.

9. The Company does not have any deferred tax liability as envisaged in Accounting standard 22 issued by the ICAI.

10. Sundry Creditors and Sundry Debtors are subject to confirmation by the respective parties.

11. Figures of the previous year have been regrouped and reclassified wherever necessary.

12. The amounts in the Balance Sheet & Statement of Profit & Loss are rounded off to the nearest rupee.

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Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided Rs. Nil. (Previous year Rs.Nii)

2. Contingent Liability in respect of: AS AT 31 ST AS AT 31ST MARCH,2010 MARCH,2009 RUPEES IN LACS RUPEES IN LACS

(a) Guarantee issued by Banks in favour of various Central & State Government Department and Local Bodies. 24.06 24.06

(b) Demands under Excise Act, disputed in appeal. 605.92 558.44

The demands at (b) above are payable with interest and penalty wherever applicable.

3. In the earlier year various writ petitions had been filed in the High Court of Bombay disputing the Customs duty liability and rate of customs duty on imported raw materials (for own consumption as well as sale on high seas basis). The Company has furnished to the Customs Authority bank guarantee totaling Rs.19,57,376/- (previous year Rs. 19,57,376/-) against this disputed liability. In respect of imported raw material sold on high seas basis there are advance recoveries of Rs. 10,33,628/- (Previous Year Rs. 10,33,628/-) from the constituents towards the likely custom duty liability.

4. Leased Assets: Assets taken on lease:

Interest, penalty and damages claimed by the lessor shall be considered in the year of award by the arbitrator.

Assets given on lease:

The lease period having expired during the F.Y. 2001-02, the Company has since initiated steps to recover possession of assets but has still not been able to take possession of the same.

5. Registration of the Company with Board for Industrial and Financial Reconstruction(BIFR):

The Company was declared a sick industrial undertaking in terms of Section 3(1 )(0) of the Sick Industrial Companies (special provisions) Act, 1985.

The Industrial Development Bank of India Limited (IDBIL) was appointed as the Operating Agency to prepare a Techno Economic Viability Study and Revival Scheme forthe Company.

In the hearing held on 18th June, 2009, the Honble Board has appointed IFCIL as the Operating Agency in place of IDBIL.

The Company has submitted a Draft Rehabilitation Scheme with the Operating Agency, for onward submission to the Honble BIFR. The same is under the consideration of the Operating Agency.

The Company continues its manufacturing operations, and the accounts are prepared on going concern basis.

6. Borrowings from Banks and Term Lenders:

Restructuring by Standard Chartered Bank (SCB):

The Companys proposal for restructuring of borrowings was approved by SCB (member of consortium of lenders) in 2002. The liability of SCB in accordance with the aforesaid sanction was accounted. The Company is amortizing borrowings in accordance with restructuring scheme as sanctioned by SCB.

Recall of working capital facilities by Dena Bank (DB), State Bank of Saurashtra (SBS) and Central Bank of India (CBI):

The Companys proposal for restructuring of working capital facilities was rejected by DB, SBS and CBI (Banks) (all members of consortium of lenders), and the aforesaid facilities were recalled by the Banks followed up by recovery applications filed by them before the Debt Recovery Tribunal situated at Mumbai (DRT). By an interim order of November 2002 the DRT has restrained the Company from disposing its assets, except dealing with its stocks in its ordinary course of business. Aggrieved against a part of the aforesaid order of the Honble DRT, the banks had preferred an appeal before the Debts Recovery Appellate Tribunal (DRAT) against the aforesaid order of DRT.

In view of reference of sickness of the company registered by the Honble BIFR as stated in Para 5 above, the Company had filed an application before DRAT for stay of further proceedings in the matter, and the same was allowed by DRAT.

During the Financial Year 2008-09 the Company had entered into One Time Settlement (OTS) with Dena Bank on 29.12.2008. In terms thereof the OTS amounts is payable in 12 interest free quarterly installments, to be completed by December, 2011. The Company will give effect to the waiver allowed by Dena bank on complete discharge of OTS and release of charge over assets of the Company held by Dena Bank, as failure to discharge the OTS installments by the Company in accordance with stipulations thereof will result in revocation of OTS by Dena Bank and restoration of liability payable by the Company pre OTS. The company has started to repay the dues as per the terms of the OTS agreed with Dena Bank.

The Company had completed payment of dues of OTS with State Bank of Saurashtra (SBS) and the effect of the waiver has since been accounted.

The Company is in negotiations with Central Bank of India for a One Time Settlement (OTS) of the outstanding dues and is hopeful of arriving at a settlement in the near future.

Term Loan from Industrial Development Bank of India Limited (IDBIL):

The Company had entered into One Time Settlement (OTS) with SASF, assignee of debt recoverable by IDBIL from the Company. In terms thereof the Company was required to pay OTS amounts towards principal and interest by November 2009.The Company has during the year completed payment of dues of OTS. However, as the release of charge over its assets is not fully discharged by IDBIL and final letter for no dues is pending from IDBIL, the Company has thought it prudent to give the effect of the waiver allowed by SASF on complete release of charge and final letterfor no dues from IDBIL.

Recovery Application of The Federal Bank Limited (FBL):

Pursuant to non payment by the Company of the amount payable on redemption of non-convertible debentures, FBL has filed an application for recovery before the Debt Recovery Tribunal situated at Chennai. The DRT passed an order dated 31st December, 2002 for issue of a Recovery Certificate for a total sum of Rs.2,86,79,344/- and simple interest at 11 % till realization of the amount as per the Recovery Certificate. The Company has obtained stay of proceedings from DRAT, in view of registration of Companys reference before the Honorable BIFR.

Settlement of dues of IFCI Limited (IFCIL) and Central Bank of India (CBI):

During the year the Company had entered into One Time Settlement (OTS) with IFCIL on 16* December 2009. In terms thereof the OTS amount is payable in 8 interest free quarterly installments by December 2011. The Company will give effect to the waiver allowed by IFCIL on complete discharge of OTS and release of charge over assets of the Company held by IFCIL, as failure to discharge the OTS installments by the Company in accordance with stipulations thereof will result in revocation of OTS by IFCIL and restoration of liability payable by the Company pre OTS. The company is regular in repayment of the due installments as per the terms of the OTS agreed with IFCIL

The Company has proposed a one time settlement plan to CBI, and is in negotiations for the same. It is hopeful of arriving at a settlement in the nearfuture.

Pending settlement discussions with Central Bank of India, the Company has accounted for interest liability as per the contracted rate of interest.

7. The Company does not have any deferred tax liability as envisaged in Accounting standard 22 issued by the ICAI.

8. The Basic Earning per share of the company is Rs.(23.91) as defined in Accounting Standard 20 issued by ICAI.

9. The entire operation of the company relates to only one segment viz. Thermoware Products. Hence as per AS(17) issued by ICAI, there is only one reportable segment.

10. RELATED PARTY DISCLOSURE AS PER(AS-18) ISSUED BYICAI:-

(a) List of Related Parties with whom transactions have taken place and Relationships: Sr. No. Name of the Related Party Relationship

1. Shri Chiranjiv Vaghani Key Management Personnel

2. Shri Madhup B. Vaghani

3. Vaghani Holdings Key Management Personnel /

Relatives of Directors are Co-owners of the AOP and controlling major share in AOP and have a significant Influence.

11. The Company has not yet identified the total amount due to small scale industrial undertakings.

12. Sundry Creditors and Sundry Debtors are subject to confirmation by the respective parties.

13. Figures of the previous year have been regrouped and reclassified wherever necessary.

14. The amounts in the Balance Sheet & Profit & Loss Account are rounded off to the nearest rupee.