Notes to Accounts of National Plastic Industries Ltd.

Mar 31, 2025

(c) Reconciliation of number of shares outstanding as on beginning and closing of the year.

The company has neither issued nor bought back any of its shares during the year and also in previous year and balance of share at the end of the year is the same as at the beginning of the year.

(d) Details of Promoter’s Shareholding:

i) Vehicle Loan amounting to Rs 34.25 Lacs (Previous Year 48.40 Lacs) repayable in monthly installments, last installment due in 15.03.2028 Rate of interest as at year end 8.95 % and secured against specific vehicles.

ii) ECGL from Axis Bank, Union Bank of India & Yes Bank amounting to Rs. NIL (Previous Year Rs 57.78 Lacs) secured against First charge on Fixed Assets and Current Assets of Silvassa and Patna Unit on Pari-passu basis.

iii) Unsecured Loan amounting to Rs 535.96 lacs (Previous Year Rs 1004.04 lacs) represents loans from related parties and generally of long term nature however no repayment schedule is specified.

i) Cash Credit facility from Axis Bank & Yes Bank amounting to Rs 1530.41 Lacs (Previous year Rs. 1879.45 Lacs) secured against first charge on Current Assets of Silvassa, Patna and Nellore Units on Pari-passu basis.

ii) Packing Credit Loan and Export Bill Discounting from Yes Bank amounting to Rs. 100.10 Lacs (Previous Year Rs 650.85 Lacs) First charge on Fixed Assets and Current Assets of Silvassa, Patna Unit & Nellore Unit on Pari-passu basis.

iii) ECGL from Union Bank of India & Yes Bank amounting to Rs. NIL (Previous Year Rs.161.78 Lacs) First charge on Fixed Assets and Current Assets of Silvassa, Patna Unit & Nellore Unit on Pari-passu basis.

iv) Term Loan from Axis Bank amounting to Rs. 121.64 Lacs (Previous Year Rs. NIL) secured against First charge on Fixed Assets and Current Assets of Silvassa, Patna Unit & Nellore Unit on Pari-passu basis.

The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.

A description of methods used for sensitivity analysis and its Limitations:

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

Sensitivity analysis fails to focus on the inter-relationship between underlying parameters.

Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the like hood of change in any parameter and the extent of the change if any.

Note 37 EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have not recommended dividend for the financial year 2024-25. There are no other subsequent adjusting events noted by the management that could have a potential impact on the financial statements.

Note 38 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENTA. Accounting Classifications and Fair Values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

B. Measurement at Fair Values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.

The Fair Value of the Investment Property situated at Kashi Mira approximates to Rs.12 Cr as at 31/03/2025

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments

(1) Credit Risk

(2) Liquidity Risk

(3) Market Risk

(1) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for credit monitoring.

The Company maintains security deposits for sales made to its distributors. For other trade receivables, the company individually monitors the sanctioned credit limits as against the outstanding balances.

Accordingly, the Company makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances of Rs 29.60 lacs as on 31st March 2025 (Previous year Rs 1257 lacs). The cash and cash equivalents are held with bank counterparties with good credit ratings.

(2) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

As of 31st March, 2025 and 31st March,2024 the Company had unutilized credit limits from banks of Rs 10.96 Cr and Rs 1.94 Cr respectively.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to the financial liabilities which are not usually closed out before contractual maturity.

(3) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee.

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

Sensitivity analysis

A reasonably possible strengthening (weakening) of the foreign currency against the Indian Rupee at 31st March would have affected the measurement of financial instruments denominated in foreign currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 25% in interest rates (MCLR) at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

The risk estimates provided assume a parallel shift of 25% interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company’s Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants. The Company monitors capital using debt to equity ratio.

Note 40

Company has not granted any Loans and Advances in the nature of Loans to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person during the year.

Note 41

There have been no proceedings initiated or are pending against the Company for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 42

Company has not been declared as Willful Defaulter by any of the Bank.

Note 43

Company has not entered into transactions with any of the Struck Off Companies during the financial year.

Company’s performance obligations are summarized below:

Sale of products:

The performance obligation is satisfied upon delivery of the product and the general Credit Term is allowed between 21 to 30 days from delivery and are non-interest bearing.

Note No. 47

During the year there has been no satisfaction of charges which were registered with the Registrar of the companies (ROC).

Further explanations for the differences as marked out against the specific column number (from 1 to 2).

1 Vendors incorrectly grouped under Customers to enabling rising of Credit notes, Rectified later on.

2 Bad Debts w/off post providing the submission to the bank.

Note 49

To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 54

Under Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 16^th June 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, which were curated on the basis of the confirmation receive from the vendors, the details of outstanding dues to the Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 have been reported in Note No. 22.

Company intends to contribute the same to the PM Care funds or similar funds as permitted under section 135 of the Companies Act, 2013 on or before 30^th September, 2025.

Note 56 STANDARDS ISSUED, BUT NOT YET APPLICABLE

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from 1 April, 2025.

Note 57 Previous Year figures have been regrouped where ever necessary.

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Mar 31, 2024

a) Rights etc. attached to Equity Shares:

The Company has only one class of equity having a face value of ?10 per share. Each shareholder is eligible for one vote per share held.

(c) Reconciliation of number of shares outstanding as on beginning and closing of the year.

The company has neither issued nor bought back any of its shares during the year and also in previous year and balance of share at the end of the year is the same as at the beginning of the year.

i) Vehicle Loans amounting to Rs.48.40 Lacs (Previous Year Rs.60.63 Lacs) Repayable in monthly installments, last installment due in 15.03.2028. Rate of interest as at year end 8.95 % and secured against specific vehicles.

ii) ECGL from Axis Bank, Union Bank of India & Yes Bank amounting to Rs.57.78 Lacs (Previous Year Rs.257.94 Lacs) secured against First charge on Fixed Assets and Current Assets of Silvassa and Patna Unit on Pari-pasu basis.

iii) Unsecured Loans amounting to Rs.1004.04 lacs (Previous Year 1007.44 lacs) represents loans from related parties and generally of long term nature, however, no repayment schedule is specified.

i) Cash Credit facility from Axis Bank & Yes Bank amounting to Rs.1879.45 Lacs (Previous year Rs.1011.26 Lacs) secured against first charge on Current Assets of Silvassa, Patna and Nellore Units on Pari-pasu basis.

ii) Packing Credit Loan and Export Bill Discounting from Yes Bank amounting to Rs.650.85 Lacs (Previous Year Rs.769.12 Lacs) secured against First charge on Fixed Assets and Current Assets of Silvassa and Patna Unit on Pari-pasu basis.

iii) ECGL from Union Bank of India & Yes Bank amounting to Rs.161.78 Lacs (Previous Year Rs.174.68 Lacs) secured against first charge on Fixed Assets and Current Assets of Silvassa and Patna Unit on Pari-pasu basis.

The Company''s Provident Fund is exempted under Section 17 of Employees'' Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.

A description of methods used for sensitivity analysis and its Limitations:

Sensitively analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

Sensitively analysis fails to focus on the inter-relationship between underlying parameters.

Hence, the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the like hood of change in any parameter and the extent of the change if any.

Note 37 EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have not recommended dividend for the financial year 2023-24. There are no other subsequent adjusting events noted by the management that could have a potential impact on the financial statements.

Note 38 FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENTA. Accounting Classifications and Fair Values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

B. Measurement at Fair Values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.

The Fair Value of the Investment Property situated at Kashi Mira approximates to Rs.12 Cr as at 31/03/2024

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments

(1) Credit Risk

(2) Liquidity Risk

(3) Market Risk

(1) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for credit monitoring.

The Company maintains security deposits for sales made to its distributors. For other trade receivables, the company individually monitors the sanctioned credit limits as against the outstanding balances.

Accordingly, the Company makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals.

Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances of Rs.1257 lacs as on 31st March 2024 (Previous year Rs.18.85 lacs). The cash and cash equivalents are held with bank counterparties with good credit ratings.

(2) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

As of 31st March, 2024 and 31st March, 2023, the Company had unutilized credit limits from banks of Rs.1.94 Cr and Rs.2.28 Cr respectively.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to the financial liabilities which are not usually closed out before contractual maturity.

(3) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee.

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

Sensitivity analysis

A reasonably possible strengthening (weakening) of the foreign currency against the Indian Rupee at 31st March would have affected the measurement of financial instruments denominated in foreign currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 25% in interest rates (MCLR) at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

The risk estimates provided assume a parallel shift of 25% interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company''s Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants. The Company monitors capital using debt to equity ratio.

Note 40

Company has not granted any Loans and Advances in the nature of Loans to Promoters, Directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person during the year.

Note 41

There have been no proceedings initiated or are pending against the Company for holding any Benami Property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 42

Company has not been declared as Willful Defaulter by any of the Bank.

Note 43

Company has not entered into transactions with any of the Struck Off Companies during the financial year.

Note 44

Contingent liabilities and commitments (to the extent not provided for)			?in Lakhs
	Particulars	As at 31st March, 2024	As at 31st March, 2023
	Contingent Liabilities
	Claims against Company not acknowledged as Debt.
	GST under appeal	108.68	26.45
	Guarantees	34.80	34.00
	Commitments Estimated amount of Contracts remaining to be executed on capital account and not provided for.	158.27	2.15

Income tax expense changed by ?NIL relating to the tax effect of these changes in expenses.

The weighted average incremental borrowing rate applied to lease liabilities as at 31st March, 2024 is 6.80%

Company’s performance obligations are summarized below:

Sale of products:

The performance obligation is satisfied upon delivery of the product and the general Credit Term is allowed between 21 to 30 days from delivery and are non-interest bearing.

Note No. 47

During the year there has been satisfaction of 3 charges which were registered with the Registrar of the companies (ROC) and the same have been time updated with the ROC records.

Further explanations for the differences as marked out against the specific column number (from 1 to 2).

1 Vendors incorrectly grouped under Customers to enabling rising of Credit notes, Rectified later on.

2 Bad Debts w/off post providing the submission to the bank.

Note 49

To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

To the best of our knowledge and belief, no funds (which are material either individually or in the aggregate) have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

1 Increase is on account of reduction in the Loans thereby resulting in the reduced interest cost and increase in the EBIT.

2 This is on account of decrease in the turnover and increase in the Deferred Taxes.

3 This is on account of decrease in the overall profit and increase on the Loans repaid during the year.

4 This is on account of decrease in the turnover.

Note 54

Under Micro, Small and Medium Enterprises Development Act, 2006, (MSMED) which came into force from 16^th June 2006, certain disclosures are required to be made relating to Micro, Small and Medium enterprises. On the basis of the information and records available with the management, which were curated on the basis of the confirmation receive from the vendors, the details of outstanding dues to the Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 have been reported in Note No. 22.

Note 55 Details of Corporate Social Responsibility (CSR) activities.

The threshold amounts of neither of Net Worth of Rs.500 crores nor Turnover of Rs1,000 crores nor Net Profit of Rs.5 crores have not crossed in the financial year and accordingly provisions of section 135 of the Companies Act, 2013, governing the Corporate Social Responsibility (CSR) is not applicable to the Company.

Note 56 STANDARDS ISSUED, BUT NOT YET APPLICABLE

Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards. There is no such notification which would have been applicable from 1 April, 2023.

Note 57 Previous Year figures have been regrouped where ever necessary.

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Mar 31, 2018

1 (a) Rights etc attached to Equity Shares :

The Company has only one class of equity having a face value of Rs. 10 per share.Each shareholder is eligible for one vote per share held.

1 (b) Details of shares held by the shareholders holding more than 5% of the aggregate shares in the Company :

1 ( c) Reconcilliation of number of shares outstanding as on beginning and closing of the year.

The company has neither issued nor bought back any of its shares during the year and also in previous year and balance of share at the end of the year is the same as at the beginning of the year

Details of Security & Terms of Repayment

i) Vehicle Loan amounting to Rs. 10.02 Lacs (Previous Year 32.18 Lacs ) Repayable in monthly installments , last installment due in 05.10.2020 Rate of interest as at year end 9.36 % and secured against specific vehicle.

ii) Vehicle Loan amounting to Rs. 50.05 Lacs (Previous Year NIL ) Repayable in monthly installments, last installment due in 05.12.2022 Rate of interest as at year end 7.74 % and secured against specific vehicle.

iii) Vehicle Loan amounting to Rs. 38.54 Lacs (Previous Year NIL ) Repayable in monthly installments , last installment due in 15.11.2022 Rate of interest as at year end 7.84 % and secured against specific vehicle.

iv) Vehicle Loan amounting to Rs. 7.58 Lacs (Previous Year NIL ) Repayable in monthly installments, last installment due in 05.07.2022 Rate of interest as at year end 8.51 % and secured against specific vehicle..

v) Term loan amounting to Rs. 141.66 lacs (Previous Year 245 ) repayble in monthly installments , last installment due on 07/01/2017 .Rate of interest as at year end 10.20% and secured against First Charge on Fixed Assets & Current Assets of Silvassa Unit.

vi) Unsecured Loans amounting to Rs. 1044 lacs (Previous Year Rs. 1120 lacs) represents loans from related parties and generaly of long term nature however no repayment schedule is specified.

Notes :

Details of Security for the Secured Short-Term Borrowings:

i) Cash Credit facility from bank amounting to Rs.1799.20 Lacs ( Previous year Rs.1437.51 Lacs ) secured against first charge on Fixed Assets and Current Assets of Silvassa, Patna and Nellore Units.

ii) Packing Credit Loan and Export Bill Discounting amounting to Rs. 898.84 Lacs (Previous Year Rs. 617.99 Lacs ) secured against First charge on Fixed Assets and Current Assets of Silvassa Unit.

iii) Cash Credit facility from bank amounting to Rs. NIL ( Previous year Rs. 325.18 Lacs ) secured against first charge on Fixed Assets and Current Assets of Nellore Units.

Note 2 As per Indian Accounting Standard 19 “Employee benefits”, the disclosures as defined are given below :

Defined Contribution Plans

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

The Company’s Provident Fund is exempted under Section 17 of Employees’ Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemption stipulate that the employer shall make good deficiency, if any, in the interest rate declared by the trust vis-a-vis statutory rate.

Defined Benefit Plan

I) Reconciliation of Defined Benefit Obligation

The future accrual is not considered in arriving at the above cash-flows.

The Expected contribution for the next year is Rs. 509,511

The Average Outstanding Term of the Obligations (Years) as at valuation date is 9.9 years

A description of methods used for sensitivity analysis and its Limitations:

Sensitivily analysis is performed by varing a single parameter while keeping all the other parameters unchanged

Sensivity analysis fails to focus on the interrelationship between underlying parameters.

Hence , the results may vary if two or more variables are changed simultaneously. The method used does not indicate anything about the likehood of change in any parameter and the extent of the change if any .

Note 3 RELATED PARTIES DISCLOSURES

(i) As per Ind AS 24, the disclosures of transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

Note 3.1 Compensation of Key management personnel

The remuneration of director and other member of key management personnel during the year was as follows:

Note 4 EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of Rs. 1.00 per fully paid up equity share of Rs. 10/each, aggregating Rs. 91,29,600/- Lacs, including Rs. 18,58,572/- lacs dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on March 31, 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date / book closure.

A. CORPORATE INFORMATION

National Plastic Industries Limited (“the Company”) is a listed entity incorporated in India.

The addresses of its registered office and principal place of business are disclosed in the introduction to the annual report.

Note No 5 : FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT

A. Accounting Classifications and Fair Values

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

B. Measurement at Fair Values

Valuation techniques and significant unobservable inputs

The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.

Financial instruments measured at fair value

The fair value of the investment property situated at Kashimira approximates to Rs. 12 cr. as on March 31,2018

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments

(1) Credit Risk

(2) Liquidity Risk

(3) Market Risk

(1) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. Further for domestic sales, the company segments the customers into Distributors and Others for credit monitoring.

The Company maintains security deposits for sales made to its distributors. For other trade receivables, the company individually monitors the sanctioned credit limits as against the outstanding balances.

Accordingly, the Company makes specific provisions against such trade receivables wherever required and monitors the same at periodic intervals.

Management beleives that none of its debtors are subject to impairment Cash and cash equivalents and other Bank balances

The Company held cash and cash equivalents and other bank balances of Rs. 69.58 lakhs as on March 31, 2018 (Previous year Rs. 101.31 lakhs). The cash and cash equivalents are held with bank counterparties with good credit ratings.

(2) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation

As of March 31, 2018 and March 31, 2017 the Company had unutilized credit limits from banks of Rs. 27 Lakhs and Rs. 144 Lakhs respectively.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to the financial liabilities which are not usually closed out before contractual maturity.

(3) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee.

Exposure to currency risk (Exposure in different currencies converted to functional currency i.e. INR)

The currency profile of financial assets and financial liabilities as at March 31, 2018 and March 31, 2017 are as below:

Sensitivity analysis

A reasonably possible strengthening (weakening) of the foreign Currency against the Indian Rupee at March 31 would have affected the measurement of financial instruments denominated in foreign currencies and affected equity and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises from borrowings. The interest rate profile of the Company’s interestbearing financial instruments as reported to the management of the Company is as follows.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 25% in interest rates (MCLR) at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

The risk estimates provided assume a parallel shift of 25% interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves . The primary objective of the Company’s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using debt to equity ratio.

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Mar 31, 2016

1. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The company does not possess necessary information as regards dus to Micro , Small and Medium Enterprises for the necessary provision of interest and disclosures.

2. In the opinion of the management the Current Assets, Loans and Advances are expected to realize at least amount at which they are stated, if realized in the ordinary course of the business and provision of all known liabilities have been adequately made in the accounts.

3. AS-15 DISCLOSURE ON DEFINED BENEFIT PLANS:-

The Company offers Gratuity employee benefit scheme to its employees.

Nature of Benefit - Gratuity is payable on death whilst in service or withdrawal from service due to resignation, termination or early retirement and on retirement from service at normal retirement age.

The following table sets out the funded status of the defined benefit schemes and the amount recognized in the financial statements:

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Mar 31, 2015

A) Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The company does not possess necessary information as regards due to Micro, Small and Medium Enterprises for the necessary provision of interest and disclosures.

b) In the opinion of the management the Current Assets, Loans and Advances are expected to realize at least amount at which they are stated, if realized in the ordinary course of the business and provision of all known liabilities have been adequately made in the accounts.

c) The Company has changed method of Depreciation with effect from 1st April, 2014 due to new method prescribed under Schedule II of Companies Act, 2013.

The Company has W/off Written Down values of Fixed Assets amounting to Rs, 91,51,665/- whose useful lifes has already expired at the beginning of the year in accordance with provisions of Depreciation as per Schedule II of the Companies Act, 2013.

d) AS-15 DISCLOSURE ON DEFINED BENEFIT PLANS:-

The Company offers Gratuity employee benefit scheme to its employees.

Nature of Benefit - Gratuity is payable on death whilst in service or withdrawal from service due to resignation, termination or early retirement and on retirement from service at normal retirement age.

The following table sets out the funded status of the defend benefit schemes and the amount recognized in the financial statements:

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Mar 31, 2014

Note 1 : Long-Term Borrowings

Details of Security & Terms of Repayment

i) Term Loan amounting to Rs. 146.47 lacs (Previous Year Rs. 225.49 lacs) Repayable in monthly installments, last installment due in 28.02.2017 Rate of interest as at year end 13.75 % and secured against First Charge on Fixed Assets & Current Assets of Patna Unit .

ii) Vehicle Loan amounting to Rs. 27.66 lacs (Previous Year Rs. 40.07 lacs) Repayable in monthly installments, last installment due in 31.03.2017. Rate of interest as at year end 11.75% and secured against specific vehicle.

iii) Vehicle Loan amounting to Rs. NIL (Previous Year Rs. 29 lacs ) Repayable in monthly installments, last installment due in 05.04.2013. Rate of interest as at year end 11.72 % and secured against specific vehicle.

iv) Vehicle Loan amounting to Rs. NIL (Previous Year Rs. 2.88 lacs ) Repayable in monthly installments, last installment due in 01.04.2016. Rate of interest as at year end 11.75% and secured against specific vehicle.

v) Vehicle Loan amounting to Rs. 12.27 lacs (Previous Year Rs. 23.28Lacs) Repayable in monthly installments, last installment due in 01.04.2016. Rate of interest as at year end 11.72% and secured against specific vehicle.

vi) Term Loan amounting to Rs. 156.37 Lacs (Previous Year Rs. 221.20 lacs) Repayable in quarterly installments, last installment due in 31.03.2017. Rate of interest as at year end 13.50% and secured against First Charge on Fixed Assets & Current Assets of Nellore Unit .

vii) Term loan amounting to Rs. 28.20 lacs (Previous Year NIL) repayable in monthly installments, last installment due on 07/01/2017 Rate of interest as at year end 13.75% and secured against First Charge on Fixed Assets & Current Assets of Silvassa Unit .

viii) Unsecured Loans amounting to Rs. 1069.88 lacs (Previous Year Rs. 625.06 lacs) represents loans from related parties and generally of long term nature however no repayment schedule is specified .

a) Corporate information

The company is engaged in manufacturing plastic injection moulded articles and mattresses. The company is having manufacturing plants at Silvassa, Patna and Nellore.

Note 2(a) : Additional information to the financial statements (Figures of amounts in Lacs)

As at 31st March, 2014 As at 31st March,2013 Note Particulars

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

(i) Contingent liabilities

(a) Bank Guarantees Outstanding 38.25 38.25

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets 26.76 134.49



b) Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

The company does not possess necessary information as regards due to Micro, Small and Medium Enterprises for the necessary provision of interest and disclosures.

g) In the opinion of the management the Current Assets, Loans and Advances are expected to realize at least amount at which they are stated, if realized in the ordinary course of the business and provision of all known liabilities have been adequately made in the accounts.

i) AS-15 DISCLOSURE ON DEFINED BENEFIT PLANS:-

The Company offers Gratuity employee benefit scheme to its employees.

Nature of Benefit - Gratuity is payable on death whilst in service or withdrawal from service due to resignation, termination or early retirement and on retirement from service at normal retirement age.

The following table sets out the funded status of the defined benefit schemes and the amount recognised in the financial statements:

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Mar 31, 2013

A) Corporate information

The company is engaged in manufacturing plastic injection moulded articles and mattresses. The company is having manufacturing plants at Silvassa , Patna and Nellore.

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Mar 31, 2012

1. (a) Rights etc. attached to Equity Shares :

The Company has only one class of equity having a face value of t 10 per share. Each shareholder is eligible for one vote per share held.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the Next Annual General Meeting, except in case of interim dividend.

1. (b) Details of shares held by the shareholders holding more than 5% of the aggregate shares in the Company :

1. (c) Reconcilliation of number of shares outstanding as on beginning and closing of the year.

The company has neither issued nor bought back any of its shares during the year and also in previous year and balance of share at the end of the year is the same as at the beginning of the year.

Details of Security & Terms of Repayment :

i) Term Loan amounting to Rs. 46. 44 lacs (March, 31st, 2011 Rs. 107.16 Lacs) Repayable in monthly installments, last installment due in 30.09.2013. Rate of interest as at year end 15 % and secured against First Charge on Fixed Assets & Current Assets of Silvassa Unit

ii) Term Loan amounting to Rs. 13.20 lacs (March, 31st, 2011 Rs. Nil) Repayable in monthly installments, last installment due in 31.05.2013. Rate of interest as at year end 15 % and secured against First Charge on Fixed Assets & Current Assets of Patna Unit .

iii) Foreign Currency Term Loan amounting to Rs. 300 lacs (March, 31st, 2011 Rs. Nil) Repayable in monthly installments, last installment due in 31.03.2017. Rate of interest as at year end 15 % and secured against First Charge on Fixed Assets & Current Assets of Silvassa & Patna Unit.

iv) Vehicle Loan amounting to Rs. 57.29 lacs (March, 31st, 2011 Rs. Nil) Repayable in monthly installments, last installment due in 31.03.2017. Rate of interest as at year end 11.75 % and secured against specific vehicle.

v) Vehicle Loan amounting to t 4.26 lacs (March, 31st, 2011 Rs. 9.96) Repayable in monthly installments, last installment due in 05.04.2013. Rate of interest as at year end 11.72 % and secured against specific vehicle.

vi) Vehicle Loan amounting to Rs. Nil lacs (March, 31st, 2011 X 11.78) Repayable in monthly installments, and secured against specific vehicle.

vii) Term Loan amounting to t 271.05 lacs (March, 31st, 2011 t Nil) Repayable in quarterly installments, last installment due in 31.03.2017. Rate of interest as at year end 12.50 % and secured against First Charge on Fixed Assets & Current Assets of Nellore Unit.

viii) Unsecured Term Loan amounting to X 8.63 lacs (March, 31st, 2011 X 22.76 lacs) Repayable in monthly installments, last installment due in 03.10.2013. Rate of interest as at year end 15%.

ix) Unsecured Loans amounting to Rs. 610.89 lacs (March, 31st, 2011 Rs. 252.13 lacs) represents loans from related parties and generaly of long term nature however no repayment schedule is specified.

Notes:

Details of security for the secured short-term borrowings:

(i) Cash Credit facility from bank amounting to Rs. 438.90 lacs (Previous year Rs. 636.77 lacs) secured against first charge on Fixed Assets and Current Assets of Silvassa and Patna Units.

(ii) Foreign Currency Loan from bank amounting to Rs. 600.00 lacs (Previous Year Rs. NIL) secured against first charge on Fixed Assets and Current Assets of Silvassa Unit.

(iii) Packing Credit Loan amounting to Rs. 135.80 lacs (Previous Year Rs. 147.11 lacs) secured against First charge on Fixed Assets and Current Assets of Silvassa Unit.

(iv) Post Shipment Credits amounting to Rs. 12.62 lacs (Previous Year Rs. 30.29 lacs) secured against First charge on Fixed Assets and Current Assets of Silvassa Unit.

(iv) Cash Credit facility from bank amounting to t 106.16 lacs (Previous year Rs. NIL) secured against first charge on Fixed Assets and Current Assets of Nellore Unit.

Note : Security Deposits received from customers in the ordinary course of the business are not expected to be settled within twelve months after the reporting date. The company has however presented the same as current liability, since it does not have unconditional right to defer its settlement for twelve months after the reporting date.

Note : The Company has recognised deferred tax asset on unabsorbed depreciation to the extent of the corresponding deferred tax liability on the difference between the book balance and the written down value of fixed assets under Income Tax (or) The Company has recognised deferred tax asset on unabsorbed depreciation and brought forward business losses based on the Management's estimates of future profits considering the non-cancellable customer orders received by the Company.

Note 1(A) : Corporate Information and Significant Accounting Policies

a) Corporate information

The company is engaged in manufacturing plastic injection moulded articles and mattresses. The company is having manufacturing plants at Silvassa, Patna and Nellore.

Note 1(B) : Additional information to the financial statements (Figures of amounts in Lacs)

Particulars As at As at 31st March, 2012 31st March, 2011 Rs. Rs.

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

(i) Contingent liabilities

(a) Claims against the Company not acknowledged as debt (give details)

Income Tax demand in appeal - 21.76

(b) Bank Guarantees Outstanding 38.25 38.25

(ii) Commitments

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

Tangible assets 25.98 441.33

b) Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006.

The company does not possess necessary information as regards to Micro, Small and Medium Enterprises for the necessary provision of interest and disclosures.

g) In the opinion of the management the Current Assets, Loans and Advances are expected to realize at least amount at which they are stated, if realized in the ordinary course of the business and provision of all known liabilities have been adequately made in the accounts.

h) The company has capitalized following preoperative expenses to various fixed assets on such basis as certified by the management, in respect of following new plants on their commencement of commercial production:

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Mar 31, 2010

1 Contingent liability not provided for in respect of :

a) Bank Guarantees Outstanding Rs. 37.25 Lacs (Previous Year Rs. 36.25 Lacs)

b) Capital Commitment Outstanding (Net of Advance) Rs. 21.13 Lacs. (Previous year Nil Lacs)

2 In the opinion of the management the Current Assets, Loans and Advances are expected to realize at least amount at which they are stated, if realized in the ordinary course of business and provision of all known liabilties have been adequately made in accounts.

3 Additional information pursuant to paragraphs 3. 4C and 4D of part to Schedule VI of the Companies Act, 1956.

a. Details of Capacity, Production, Turnover, Opening Stock and Closing Stock of Finished Goods. (Excluding products of third party manufactured on Labour job basis.)

e) Sale of Raw Material Rs. NIL (Previous year Rs. 8.88 Lacs)

4 No provision has been made for liability for retirement benefits as required by Accounting Standard - 15 and for impairment of Fixed Assets as required by Accounting Standard - 28 and impact on results of the company is not ascertained

5 Disclosures of Transactions with Related Party (Information Restricted to Transactions During the year only)

i) List of Related Parties:- a) Key Management Personnel

Mr. Paresh Vinod Parekh Mr. Ketan Vinod Parekh

b) Relatives of Key Management Personnel

Mr. Vinod V. Parekh Mrs. Nalini V. Parekh Mrs. Nipa V. Parekh Mr. Harsh P. Parekh Mr. Vivek P. Parekh

c) Enterprises Owned or Significantly Influenced by any Key Management Personnel or Relatives

M/s. National Plastic Industries M/s. Enpee Credit & Capital (I) Ltd. Mr. Ketan Vinod Parekh (HUF)

6 Figures of Previous Year has been regrouped / rearranged wherever necessary.