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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Plastiblends India Ltd.

Mar 31, 2025

Terms/Right attached to Equity Shares :

The Company has only one class of equity shares having a par value of '' 5/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

There were no buy back of shares / issue of shares for consideration other than cash during the period of 5 years immediately preceding the reporting date.

a. Capital Reserve:

Comprise of Central Capital Investment Subsidy received for setting up manufacturing plant at Roorkee.

b. General Reserve:

The Company has transferred a portion of the net profit of the Company before declaring the dividend to General Reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Act.

c. Equity instruments through other comprehensive income:

This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

First Pari Passu charge on Company''s Entire Stock & Book Debts present and future & First Pari Passu charge on all Plant & Machinery and Immovable Fixed Assets of the Company located at 74/1,2, 75/3 at Daman Industrial Estate. There is no default, continuing or Otherwise as at the Balance Sheet Date, in repayment of any of the above borrowings.

Interest rate of the said working capital facilities from banks (secured) is 9.00% and it is repayable on demand.

Note 37:Contingent Liabilities (Ind AS 37):
a.	Claims against the Company not acknowledged as debts:				('' in Lakhs
	SN	Particulars	Brief description of the matter	As at 31^st March, 2025	As at 31^s1 March, 2024
	1	Excise and Goods and Service Tax matter under dispute	Related to Show cause notice for CHA and C & F agents, Cenvat or Service tax on Sales commission, Service tax credit taken on sales commission for export sales, GST Cross Charge & Export Obligation etc.	3,907.26	1,321.81
	2	Sales Tax Matter under Dispute	Related to Show Cause Notice for Sales Tax Assessment Form Liability	29.11	29.11
	3	Others	Related to Department of Labour & Employment.	6.87	6.87
		Total		3,943.24	1,357.79

The Company''s pending litigations comprise of proceedings pending with Income Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results. The Above Figures are excluding interest & Penalty except in case of Goods & Service Tax.

b. The Company did not have any long-term contracts for which there were any material foreseeable losses.

Note 39: Employee Benefits (Ind AS 19):a. Defined Benefit Plans:Gratuity:

In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is managed by certain third-party fund managers. The Company''s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in other comprehensive income, net of taxes.

Inherent Risk:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as Salary Risk,Interest Rate Risk, Investment Risk, changes in demographic experience. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

*These Sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity Analysis.

Basis of Estimation of Assumption:

The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

The discount rate is based on the prevailing market yields of Indian Government securities for the estimated term of the obligations.

The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate considered is the management''s estimate, based on previous years'' employee turnover of the Company. Asset and Liability matching strategy:

The money contributed by the Company to the Gratuity Fund to finance the liability of the plan has to be invested. The Company has invested the plan assets in the insurer managed funds. The expected rate of return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligation.

There is no compulsion on the part of the Company to fully refund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity.

b. Defined Contribution Plans:

Amount recognized as an expense and included in Note 33 under the head âContribution to Provident and other Fundsâ of Statement of Profit & Loss '' 299.26 Lakhs (31^st March, 2024''285.99 Lakhs)

c. Superannuation / NPS Benefits :

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain employees.

Contribution to Superannuation / NPS Fund charged to Statement of Profit & Loss in Notes 33 under the head âContribution to Provident and other Fundsâ is ''12.98 Lakhs (31^st March, 2024''21.47 Lakhs)

Note 40:Segment Reporting (Ind AS 108)

The Company is exclusively engaged in the manufacturing of Masterbatches in India. As per Ind AS -108, âOperating Segmentsâ specified under Section 133 of the Companies Act 2013, there are no reportable operating or geographical segments applicable to the Company.

Terms and Conditions of transactions with Related Parties:

The sales to and purchases from related parties are made in the normal course of business and on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash.

Note 42: Revenue Recognition (Ind AS 115)

The Company is primarily in the Business of manufacture and sale of Masterbatches. All sales are made at a point in time and revenue from contract with customer are recognised when goods are dispatched and the control over the goods sold are transferred to customers. The Company does not expect to have any contracts where the period between the transfer of goods and payment by customer exceeds one year. Hence, the Company does not adjust revenue for the time value of money.

In compliance with Ind AS 115, certain discounts are treated as variable components of consideration and have been recognised as deductions from revenue instead of other expenses.

Note 47: Investments in equity instruments designated at Fair Value through Other Comprehensive Income

The Company has investments in Equity Shares of Kabra Extrusiontechnik Limited. The Company has opted to designate the investment in Kabra Extrusiontechnik Limited at Fair Value through Other Comprehensive Income since these investments are not held for trading purpose.

Dividend from Kabra Extrusiontechnik Limited(Refer Note 30) : (FY 2024-25''28.96 Lakhs) (FY 2023-24 : '' 28.96 Lakhs) Note 48:Fair Value Measurement (Ind AS 113)

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. Kabra Extrusiontechnik Limited is listed on stock exchange and the investment by the Company is being valued using the closing exchange price at the reporting date.

Venture Capital Fund (Urban Infrastructure Fund), Gold PTC (Liquid Gold Series -2 Nov 2020 & Liquid Gold Series 4) and Mutual Fund in SBI Liquid Fund are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. There are no instruments which are to be considered in Level 3.

The management assessed that cash and bank balances, trade receivables, loans, trade payables, cash credits, commercial papers and other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

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

(a) The fair values of the quoted investments are based on market price at the reporting date.

(b) The fair values of the unquoted investments are based on net asset value at the reporting date

(c) The fair values of remaining financial instruments is determined using discounted cash flow analysis or based on the contractual terms.

The discount rates used is based on management estimates.

Note 49:Financial Instruments Risk Management Objectives and Policies (Ind AS 107)

The Company''s principal financial liabilities comprise borrowings and other payables. The main purpose of these financial liabilities is to finance and support the Company''s operations. The Company''s principal financial assets include Investments, Loans and Other receivables, Cash and Cash Equivalents, Other Bank Balances.

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

Financial Risk Management

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

a. Market Risk

b. Currency Risk

c. Credit Risk

d. Liquidity Risk

Market risk arises from the Company''s use of interest bearing financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or other market factors. Financial instruments affected by market risk include borrowings.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The management is responsible for the monitoring of the Company''s interest rate position. Different variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable, competitive, cost of funding.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period. Further, the calculations for the unhedged floating rate borrowing have been done on the notional value of the foreign currency (excluding the revaluation).

b. Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates.The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the import of raw materials and spare parts, capital expenditure, exports of finished products.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures.

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, investing and financing activities including security deposits, deposits with banks, investment in equity shares, venture capital fund investments, foreign exchange transactions etc.

Trade receivables:

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each customer and based on the evaluation credit limit of each customer is defined. Wherever the Company assesses the credit risk as high the exposure is backed by either bank guarantee / letter of credit or security deposits.

Net Trade receivable as on 31^st March, 2025''11,128.95 Lakhs (31^st March, 2024 is '' 8,798.65 Lakhs)

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Other Financial Instrument and Cash Deposits

With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances, cash, security deposits with respect to lease agreements, etc. the Company''s exposure to credit risk arises from default of the counterparty, with a maximum exposure equal to the carrying amount of these assets.

Credit risk from balances with banks is managed with the Company''s policy. The Company limits its exposure to credit risk by only placing balances with local banks. Given the profile of its bankers, management does not expect any counterparty to fail in meeting its obligations. With respect to other financial instruments, the Company assess the risk of recoverability on periodic basis and makes required provision whenever necessary.

d. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company monitors its risk by considering the maturity of its financial assets (e.g. trade receivables, other financial assets) and projected cash flows from operations.

The cash flows, funding requirements and liquidity of the Company is monitored under the control of the management. The objective is to optimize the efficiency and effectiveness of the management of the Company''s capital resources. The Company manages liquidity risk by maintaining adequate reserves and borrowing facilities, by continuously monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company currently has sufficient cash on demand to meet expected operational expenses.

The Board of Directors have recommended dividend of '' 2.50/- per share i.e. 50% for FY 2024-25 in the Board meeting held on 28.04.2025.This proposed dividend on equity shares is subject to approval at AGM & not recognised as liability on reporting date.

Note 51: Capital Management (Ind AS 1)

For the purpose of Company''s capital management, capital includes issued capital and other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company''s Capital Management is to maximize shareholders value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement of financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity.

Note 52: Leases (Ind AS 116) a. Company as Lessee

The Company has taken office buildings & warehouses on lease for a tenure of 3 to 5 years. The Company''s obligations under its leases are secured by the lessor''s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. There are no variable lease payments and residual value guarantees for these leases. The leases are renewable on mutually agreeable terms

The Company applied Ind AS 116 for the lease property and the impact is given in financial is as follows :-The company applied the following method for Ind AS 116.

1. Applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12 months of lease term.

2. While determining the lease term option to extend or terminate the lease has been considered.

b. Company as lessor Operating leases:-

The company has provided facilities and office premises on lease. These lease arrangements range for a period between 1 to 3 years. Some of these leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

The Company has sought inviting information from its vendors for their status under âThe Small, Medium and Micro Enterprises Development Act 2006â,The Company has received the MSME Certificates from Vendors. Accordingly the company has identified the vendors & trade payable treated as MSME trade payable separately.

Note 55: Research & Development:

Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss is '' 388.67 Lakhs and Capital Expenditure in Fixed Assets is ''13.99 Lakhs. (31^st March, 2024, in Statement of Profit & Loss:'' 321.46 Lakhs and Capital Expenditure: - '' 63.62 Lakhs).

Note 56: Government Grants (Ind AS 20):

During FY 2018-19 the Company has received '' 64 lakhs as grant against capital investments under Scheme for Assistance to Industrial Units Purchasing Plant and Machinery during the exhibition - âPlastIndia 2015â. Grant is recognized in statement of Profit and Loss on systematic basis over period in which the Company recognizes depreciation of related assets. Other income includes grant under this scheme of '' 4.26 lakhs.

Note 58: Other Statutory Information

a) The Company has not been declared as a willful defaulter by any lender who has powers to declare a Company as a willful defaulter at any time during the Financial Year or after the end of reporting period but before the date when financial statements are approved.

b) The Company has no transactions with struck off Companies.

c) There is modification of charges in FY 24-25 and the same has been registered with Registrar of Company (ROC). The Company does not have any charges or satisfaction which is yet to be registered with the ROC beyond the statutory period.

d) During the year ended 31^st March, 2025, the Company was not party to any approved scheme which needs approval from Competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

e) The Company has not traded or invested in Crypto Currency or virtual currency during the Financial Year.

f) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961.

g) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

i) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

j) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

k) The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated or is pending against the Company for holding any benami property.

Note 59 : Compliance with section 143(3) for maintenance of Books of Accounts :-

a. With effect from August 5, 2022, the Ministry of Corporate Affairs (MCA) has amended the Companies (Accounts) Rules, 2014, relating to maintenance of electronic books of accounts and other relevant books and papers. Pursuant to this amendment, the Company is required to maintain the books of account which are assessable in India at all times and their back-up is to be kept on servers located in India on a daily basis.

b. The Company has a process to take daily back-up of books of accounts maintained in electronic mode and along with the logs of the back-up of such books of accounts.

Note 60 :

Previous Year Figures have been regrouped / reclassified whenever necessary to correspond with current year classification /

disclosure.

Mar 31, 2024

Terms/Right attached to Equity Shares :

The Company has only one class of equity shares having a par value of ? 5/- per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

There were no buy back of shares / issue of shares for consideration other than cash during the period of 5 years immediately preceding the reporting date.

a. Capital Reserve:

Comprise of Central Capital Investment Subsidy received for setting up manufacturing plant at Roorkee.

b. General Reserve:

c. Equity instruments through other comprehensive income:

First Pari Passu charge on Company''s Entire Stock & Book Debts present and future & First Pari Passu charge on all Plant & Machinery and Immovable Fixed Assets of the Company located at 74/1,2, 75/3 at Daman Industrial Estate. There is no default, continuing or otherwise as at the Balance Sheet date, in repayment of any of the above borrowings.

Interest rate of the said working capital facilities from banks (secured) is 9.00% and it is repayable on demand.

Note 37: Contingent Liabilities (Ind AS 37) : a. Claims against the Company not acknowledged as debts :					(? in Lakhs)
	SN	Particulars	Brief description of the matter	As at 31^st March, 2024	As at 31^st March, 2023
	1	Excise and Goods and Service Tax matter under dispute	Related to Show cause notice for CHA and C & F agents, Cenvat or Service tax on Sales commission, Service tax credit taken on sales commission for export sales, etc.	1,319.46	1,319.46
	2	Sales Tax Matter under Dispute	Related to Show Cause Notice for Sales Tax Assessment Form Liability	31.46	31.46
	3	Others	Related to Department of Labour & Employment.	6.87	Nil
		Total		1,357.79	1,350.92

b. Letter of Credit & Bills of Exchange as at March 31,2024 is ? 54.79 Lakhs (March 31,2023 is ? 56.70 Lakhs)

c. Guarantees issued by the Banks on behalf of the Company as at March 31,2024 is ? 426.97 Lakhs (March 31,2023 is ?341.23 Lakhs)

d. The Company did not have any long-term contracts for which there were any material foreseeable losses.

Note 38: Capital & Other Commitments :

(? In Lakhs)

Sr. No.

Particulars

As at

31^st March, 2024

As at

31^st March, 2023

Estimated Amount of Contracts remaining to be executed on capital account & not provided. Out of which ? 293.54 Lakhs has been paid as advances.

435.45

157.90

Note 39: Employee Benefits (Ind AS 19) :a. Defined Benefit Plans :

Gratuity :

Inherent Risk:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as Salary Risk, Interest Rate Risk, Investment Risk, changes in demographic experience. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

Basis of Estimation of Assumption :

The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations.

The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate considered is the management''s estimate, based on previous years'' employee turnover of the Company.

Asset and Liability matching strategy :

There is no compulsion on the part of the Company to fully refund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity.

b. Defined Contribution Plans :

Amount recognized as an expense and included in Note 33 under the head âContribution to Provident and other Fundsâ of Statement of Profit & Loss ?285.99 Lakhs (March 31,2023 ?290.38 Lakhs).

c. Superannuation / NPS Benefits :

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain employees.

Contribution to Superannuation / NPS Fund charged to Statement of Profit & Loss in Notes 33 under the head âContribution to Provident and other Fundsâ is ?21.47 Lakhs (March 31,2023 ?11.20 Lakhs).

Note 40: Segment Reporting (Ind AS 108)

The Company is exclusively engaged in the manufacturing of Masterbatches in India. As per Ind AS -108, âOperating Segmentsâ specified under Section133 of the Companies Act 2013, there are no reportable operating or geographical segments applicable to the Company.

Note: As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above.

Terms and Conditions of transactions with Related Parties :

Note 42: Revenue Recognition (Ind AS 115)

In compliance with Ind AS 115, certain discounts are treated as variable components of consideration and have been recognised as deductions from revenue instead of other expenses.

*Considering Financial Asset & Financial Liabilities fair value is approximately equal to Amortised Cost.

Note 47: Investments in equity instruments designated at Fair Value through Other Comprehensive Income

Dividend from Kabra Extrusiontechnik Limited (Refer Note 30) : (FY 2023-24 ? 28.96 Lakhs) (FY 2022-23 : ? 24.82 Lakhs) Note 48: Fair Value Measurement (Ind AS 113)

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on Company specific estimates. The Venture Capital Fund (Urban Infrastructure Fund), Gold PTC (Liquid Gold Series -2 Nov 2020 & Liquid Gold Series 4) and Mutual Fund in SBI Liquid Fund are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

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

(a) The fair values of the quoted investments are based on market price at the reporting date.

(b) The fair values of the unquoted investments are based on net asset value at the reporting date

(c) The fair values of remaining financial instruments is determined using discounted cash flow analysis or based on the contractual terms.

The discount rates used is based on management estimates.

Note 49: Financial Instruments Risk Management Objectives and Policies (Ind AS 107)

Financial Risk Management

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

a. Market Risk

b. Currency Risk

c. Credit Risk

d. Liquidity Risk

Interest Rate Risk

b. Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the import of raw materials and spare parts, capital expenditure, exports of finished products.

Trade receivables:

Net Trade receivable as on 31^st March, 2024 ?8,798.65 Lakhs (31^st March, 2023 is ?9,112.01 Lakhs)

Other Financial Instrument and Cash Deposits

d. Liquidity risk

The Company currently has sufficient cash on demand to meet expected operational expenses.

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

The Board of Director has recommended dividend of ? 4.25/- per share i.e. 85% for FY 2023-24 in the Board meeting held on 02.05.2024. This proposed dividend on equity shares are subject to approval at AGM & not recognised as liability on reporting date.

Note 51: Capital Management (Ind AS 1)

Note 52: Leases (Ind AS 116) a. Company as Lessee

The Company applied Ind AS 116 for the lease property and the impact is given in financial is as follows :-The Company applied the following method for Ind AS 116.

1. Applied the exemption not to recognize Right-of-use assets and liabilities for leases with less than 12 months of lease term.

2. While determining the lease term option to extend or terminate the lease has been considered.

b. Company as lessor Operating leases:-

The Company has provided facilities and office premises on lease. These lease arrangements range for a period between 1 to 3 years. Some of these leases are renewable for further period on mutually agreeable terms and also include escalation clauses.

Note 53: Corporate Social Responsibility:

Expenditure incurred in cash on Corporate Social Responsibility activities in the Statement of Profit and Loss is ? 92.74 Lakhs (March 31,2023 ?132.97 Lakhs)

The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended March 31, 2024 is ? 92.39 Lakhs (March 31,2023 ? 102.41 Lakhs)

Note 54: Information as per the requirement of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006

The Company has sought inviting information from its vendors for their status under âThe Small, Medium and Micro Enterprises Development Act 2006â, The Company has received the MSME Certificates from Vendors. Accordingly the Company has identified the vendors & trade payable treated as MSME trade payable separately.

Note 55: Research & Development:

Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss is ? 321.46 Lakhs and Capital Expenditure in Fixed Assets is ?63.62 Lakhs. (March 31,2023, in Statement of Profit & Loss:-? 229.66 Lakhs and Capital Expenditure: - ? Nil).

Note 56: Government Grants (Ind AS 20):

During FY 2018-19 the Company has received ? 64 lakhs as grant against capital investments under Scheme for Assistance to Industrial Units Purchasing Plant and Machinery during the exhibition - âPlastIndia 2015â. Grant is recognized in statement of Profit and Loss on systematic basis over period in which the Company recognizes depreciation of related assets. Other income includes grant under this scheme of ? 4.26 lakhs.

Note 58: Other Statutory Information

b) The Company has no transactions with struck off Companies.

c) There is no modification of charge in the FY 2023-24.The Company does not have any charge which is yet to be registered with Registrar of Companies beyond the statutory period.

d) During the year ended March 31,2024, the Company was not party to any approved scheme which needs approval from competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

e) The Company has not traded or invested in Crypto Currency or virtual currency during the Financial Year.

f) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income

Tax Act, 1961.

g) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

i) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign

entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in

other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

Note 59 : Compliance with section 143(3) for maintenance of Books of Accounts

b. The Company has a process to take daily back-up of books of accounts maintained in electronic mode and along with the logs of the back-up of such books of accounts.

Note 60 :

Previous Year Figures have been regrouped / reclassified whenever necessary to correspond with current year classification

/ disclosure.

Mar 31, 2023

l) Provisions, Contingent Liabilities and Contingent Assets :

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessment of time value of money and where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.

Contingent assets are not recognized in financial statements since this may result in the recognition of income that may never be realized. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and is recognized.

m) Revenue Recognition :

Revenue from contract with customers

Revenue is recognized on the basis of approved contracts regarding the transfer of goods or services to a customer for an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

Variable consideration includes discounts provided to the dealers and customers. Accumulated experience is used to estimate and provide for the discounts and revenue is only recognized to the extent that it is highly probable that significant reversal will not occur.

Sales are recognised when substantial control of the products has been transferred to the customer, being when the products are delivered to the customer without any unfulfilled obligation that could affect the customer''s acceptance of the products.

Any amount receivable from the customers are recognized as revenue after the control over the goods are transferred to the customer which is generally on dispatch of goods as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

The Company does not expect to have any contracts where the period between the transfer of goods and payment by customer exceeds one year. Hence, the Company does not adjust revenue for the time value of money.

Dividend Income

Dividends are recognised in the Statement of Profit and Loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

Interest Income

Interest Income is recognized using Effective Interest Method

n) Lease :

Accounting policy applicable from April 1,2019

The Company has applied Ind AS 116 Leases from the accounting periods beginning from April 1,2019 using the modified

retrospective approach. Accordingly, the comparative information for the year ended March 31, 2019 has not been restated and continues to be reported under Ind AS 17 and relevant appendices.

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

1. the contract involves the use of an identified asset - this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified.

2. the Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

3. the Company has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decision about how and for what purpose the asset is used is predetermined, the Company has the right to direct the use of the asset if either:

a - the Company has the right to operate the asset; or

b - the Company designed the asset in a way that predetermines how and for what purpose it will be used.

This policy is applied to contracts entered into, or modified, on or after April 1,2019. At inception or on reassessment of a contract that contains a lease component, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.

Company as a lessee

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

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

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

Short-term leases and leases of low-value assets

The Company has elected not to recognize right-of use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

Policy applicable before 1 April 2019

For contracts entered into before 1 April 2019, the Company determined whether the arrangement was or contained a lease based on the assessment of whether:

â¢ fulfilment of the arrangement was dependent on the use of a specific asset or assets;

â¢ the arrangement had conveyed a right to use the asset.

o) Government Grant :

- Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with.

- When the grant relates to an expense item, it is recognized in Statement of Profit and Loss on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed.

- When the grant relates to property, plant and equipment, the cost of property, plant and equipment is shown at gross value and grant thereon is recognized as deferred income and are credited to statement of Profit and Loss on a systematic basis over the useful life of the asset.

p) Employee Benefit Expense :

Defined benefit plan :

The Company pays gratuity to the employees whoever has completed five years of service with the Company at the time of resignation/superannuation. The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the employees.

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees'' services.

Re-measurement of defined benefit plans in respect of post-employment are charged to the Other Comprehensive Income. Re-measurement recognised in OCI is reflected immediately in retained earnings and will not be reclassified to Statement of Profit and Loss.

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on Government bonds.

The defined benefit obligation recognised in the Balance Sheet represents the actual deficit or surplus in the Company''s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any economic benefits available in the form of refunds from the plans or reductions in future contributions to the plans.

Defined contribution plan :

Payments to defined contribution plans are recognised as an expense when employees have rendered service entitling them to the contributions.

The eligible employees of the Company are entitled to receive benefits in respect of provident fund, for which both the employees and the Company make monthly contributions at a specified percentage of the covered employees'' salary. The contributions as specified under the law are made to the Government Provident Fund monthly.

Short-term employee benefits :

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave in the period the related service is rendered. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

q) Income Taxes :

The tax expense for the period comprises current and deferred tax. Tax is recognized in Statement of Profit and Loss, except to the extent that it relates to items recognized in the comprehensive income or in equity. In which case, the tax is also recognized in other comprehensive income or equity.

Current Tax :

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the Balance sheet date.

Deferred Tax :

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The carrying amount of Deferred Tax Liabilities and assets are reviewed at the end of each reporting period date and are reduced to the extent that it is no longer probable.

r) Foreign Currency Transactions :

Foreign currency transactions are recorded at exchange rate prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the Balance sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognised in the statement of profit and loss, Non- monetary assets and liabilities that are measured in terms of historical cost of foreign currencies are not translated.

s) Earnings Per Share :

The basic Earnings Per Share ("EPS") is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the 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.

t) Financial Instruments :

Financial Assets & Financial Liabilities are recognized when the Company becomes party to contractual provisions of the relevant instrument.

Initial Recognition and Measurement :

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through Profit or Loss, transaction costs that are attributable to the acquisition of the financial assets. Transaction costs of financial assets carried at fair value through Profit or Loss are expensed in Profit or Loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Classification and Subsequent Measurement : Financial Assets

Financial assets carried at Amortised Cost :

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through Other Comprehensive Income (FVTOCI) :

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at fair value through profit or loss (FVTPL) :

A financial asset which is not classified in any of the above categories are measured at FVTPL.

Investment in Equity Instruments designated to be classified as FVTOCI :

The Company carries certain equity instruments which are not held for trading. The Company has elected the FVTOCI irrevocable option for these instruments. Movements in fair value of these investments are recognized in other comprehensive income and the gain or loss is not reclassified to statement of profit and loss on disposal of these investments. Dividends from these investments are recognized in statement of profit and loss when the Company''s right to receive dividends is established.

Classification and Subsequent Measurement: Financial Liabilities

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

Impairment of financial assets :

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The application of simplified approach does not require the Company to track changes in credit risk. The Company calculates the expected credit losses on trade receivables using a provision matrix on the basis of its historical credit loss experience.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

Derecognition of Financial Instruments :

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition under Ind AS 109.

A financial liability (or a part of a financial liability) is derecognized from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires.

u) Cash and cash equivalent :

Cash and cash equivalents in the Balance Sheet comprise cash at bank and in hand that are readily convertible into cash which are subject to insignificant risk of changes in value and are held for the purpose of meeting short-term cash commitments.

v) Assets Held for Sale :

Non-current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when all of the following criteria''s are met: (i) decision has been made to sell. (ii) the assets are available for immediate sale in its present condition. (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower of its carrying value and fair value less costs of disposal. Non-current assets held for sale are not depreciated or amortised

w) Derivative Financial Instruments :

The Company enters into derivative financial instruments viz. foreign exchange forward contracts to manage its exposure foreign exchange rate risks. The Company does not hold derivative financial instruments for speculative purposes.

Derivatives are initially recognised at fair value at the date the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognised in profit or loss immediately.

x) Segment Reporting - Identification of Segments :

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company''s management to make decisions for which discrete financial information is available.

Based on the management approach as defined in Ind AS 108, the management evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

y) Cash Dividend :

The Company recognizes a liability to make cash distributions to equity holders when the distribution is authorized and approved by the shareholders. A corresponding amount is recognized directly in equity.

Note 1(B): Use of Estimates and Judgements

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are included in the following notes:

a) Useful Lives of Property, Plant & Equipment :

The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the assets.

b) Defined Benefit Plans and Compensated Absences :

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, attrition rate, future salary increases and mortality rates.

Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

c) Expected Credit Losses on Financial Assets :

The impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

d) Fair Value measurement of financial instruments :

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the Discounted Cash Flow model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility

e) Contingent Liability :

The Company has received various orders and notices from tax authorities in respect of direct taxes and indirect taxes. The outcome of these matters may have a material effect on the financial position, results of operations or cash flows. Management regularly analyses current information about these matters and discloses the information of related contingent liability.in making the decision regarding the need of creating loss provision, management considers the degree of probability of an unfavorable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or the disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate.

Note 1 (C) : Standards issued but not yet effective

The Ministry of Corporate Affairs (MCA) amended the Companies (Indian Accounting Standards) Rules on 31^st March 2023 whereby certain changes to Accounting Standards apply from 1^st April 2023 as below:

Ind AS 1 - Presentation of Financial Statements

The amendment requires disclosure of material accounting policies rather than significant accounting policies.

Ind AS 8 - Accounting policies, changes in accounting estimates and errors

Ind AS 8 has been amended to distinguish between changes in accounting policies and accounting estimates.

No significant impact on financial statements of the Company are expected as a result of these amendments

Basis of Estimation of Assumption :

The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

The discount rate is based on the prevailing market yields of Indian Government securities for the estimated term of the obligations.

The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate considered is the management''s estimate, based on previous years'' employee turnover of the Company.

Asset and Liability matching strategy :

There is no compulsion on the part of the Company to fully refund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity.

b. Defined Contribution Plans :

Amount recognized as an expense and included in Note 33 under the head "Contribution to Provident and other Funds" of Statement of Profit & Loss '' 290.38 Lakhs (March 31,2022''273.02 Lakhs)

c. Superannuation / NPS Benefits :

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain employees.

Contribution to Superannuation / NPS Fund charged to Statement of Profit & Loss in Notes 33 under the head "Contribution to Provident and other Funds" is '' 11.20 Lakhs (March 31,2022''11.85 Lakhs)

Note 40 : Segment Reporting (Ind AS 108)

The Company is exclusively engaged in the manufacturing of Masterbatches in India. As per Ind AS -108, "Operating Segments" specified under Section133 of the Companies Act 2013, there are no reportable operating or geographical segments applicable to the Company.

Terms and Conditions of transactions with Related Parties :

For the year ended March 31, 2022. This assessment is undertaken each Financial Year through examining the financial position of the related party and the market in which the related party operates.

Note 42: Revenue Recognition (Ind AS 115)

In compliance with Ind AS 115, certain discounts are treated as variable components of consideration and have been recognised as deductions from revenue instead of other expenses.

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in Level 3. There are no instruments which are to be considered in Level 3.

Financial Risk Management

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

a. Market Risk

b. Currency Risk

c. Credit Risk

d. Liquidity Risk

a. Market Risk

Interest Rate Risk

c. Credit risk

Trade receivables:

Net Trade receivable as on March 31,2023''9,112.01 Lakhs (March 31,2022 is '' 11,933.66 Lakhs)

Other Financial Instrument and Cash Deposits

d. Liquidity risk

The Company currently has sufficient cash on demand to meet expected operational expenses.

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

Note 58: Other Statutory Information

a) The Company has not been declared as a wilful defaulter by any lender who has powers to declare a Company as a wilful defaulter at any time during the Financial Year or after the end of reporting period but before the date when financial statements are approved.

b) The Company has no transactions with struck off Companies.

c) There is modification of charge in the FY 2022-23.The Company does not have any charge which is yet to be registered with Registrar of Companies beyond the statutory period.

d) During the year ended March 31,2023, the Company was not party to any approved scheme which needs approval from competent authority in terms of sections 230 to 237 of the Companies Act, 2013.

e) The Company has not traded or invested in Crypto Currency or virtual currency during the Financial Year.

f) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961.

g) The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

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

i) The quarterly returns or statements of current assets filed by Company with Banks or Financial Institutions are in agreement with the Books of Accounts.

j) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

k) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall: (a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 59 :

Previous Year Figures have been regrouped / reclassified whenever necessary to correspond with current year classification /

disclosure.

In terms of our report attached For and on behalf of the Board

For Kirtane & Pandit LLP. Shri Shreevallabh G. Kabra Shri Satyanarayan G. Kabra Shri Varun S. Kabra

Chartered Accountants (Director) (Chairman & Managing Director) (Vice-Chairman & Managing Director)

Regn No. 105215W / W100057 â , â ,

Smt Jyoti V. Kabra Shri Pushp Raj Singhvi Shri Sudarshan K. Parab

Parag Pansare (Director) (Independent Director) (Independent Director)

Shri Bajrang Lal Bagra Shri Rahul R. Rathi Smt Meena S. Agrawal

^MNo- ¹¹⁷³⁰⁹ (Independent Director) (Independent Director) (Independent Director)

Place: Mumbai Place : Mumbai Shri Anand R. Mundra Shri Himanshu S. Mhatre

Date : May 03, 2023 Date : May 03, 2023 (Chief Financial Officer) (Company Secretary)

Mar 31, 2018

Note 1: Use of Estimates and Judgments

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are included in the following notes:

a) Useful Lives of Property, Plant & Equipment:

b) Defined Benefit Plans and Compensated Absences:

c) Expected Credit Losses on Financial Assets:

Terms/Right attached to Equity Shares :

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

b. Letter of Credit & Bills of Exchange as at 31^st March, 2018 is Rs.850.77 Lacs (31^st March, 2017 Rs.39.68 Lacs, 1^st April, 2016 Rs.39.53 Lacs)

c. Guarantees issued by the Banks on behalf of the Company as at 31^st March, 2018 is Rs.166.18 Lacs (31^st March, 2017 Rs.167.33 Lacs, 1^st April, 2016 Rs. 160.47 )

d. The Company did not have any long-term contracts for which there were any material foreseeable losses.

Note 2: Employee Benefits (Ind AS 19): a. Defined Benefit Plans: Gratuity:

Inherent Risk:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as Salary Risk, Interest Rate Risk, Investment Risk, changes in demographic experience. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

Basis of Estimation of Assumption:

The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations. The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate considered is the management''s estimate, based on previous years'' employee turnover of the Company.

Asset and Liability matching strategy:

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity.

b. Defined Contribution Plans:

Amount recognized as an expense and included in Note 30 under the head âContribution to Provident and other Fundsâ of Statement of Profit & Loss Rs.166.68 Lacs (31^st March, 2017 Rs.169.50 Lacs)

c. Superannuation Benefits :

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain employees.

Contribution to Superannuation Fund charged to Statement of Profit & Loss in Notes 30 under the head âContribution to Provident and other Fundsâ is Rs.15.76 Lacs . (31^st March, 2017 Rs.16.89 Lacs)

Note 36: Segment Reporting (Ind AS 108)

Note 3 : Investments in equity instruments designated at Fair Value through Other Comprehensive Income

The Company has investments in Equity Shares of Kabra Extrusiontechnik Limited and units of Urban Infra Opportunity Fund. The Company has opted to designate the investment in Kabra Extrusiontechnik Limited at Fair Value through Other Comprehensive Income since these investments are not held for trading purpose. Investment in units of Urban Infra Opportunity Fund is being classified under Fair Value through Profit and Loss.

Dividend from Kabra Extrusiontechnik Limited (Refer Note 27) :- (For the year ended 31^st March, 2018 :- Rs.16.55 Lacs ; For the year ended 31^st March, 2017 :- Nil ;)

Note 4: Fair Value Measurement (Ind AS 113)

The Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date. Kabra Extrusiontechnik Limited is listed on stock exchange and the investment by the Company is being valued using the closing exchange price at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company specific estimates. The Venture Capital Fund (Urban Infrastructure Fund) are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Note 5: Financial Risk Management Objectives and Policies (Ind AS 107)

Financial Risk Management

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

a. Market Risk

b. Currency Risk

c.Credit Risk

d. Liquidity Risk

e. Market Risk

Interest Rate Risk

b. Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the import of raw materials and spare parts, capital expenditure, exports of finished products.

c. Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities, investing and financing activities including security deposits with banks, investment in equity shares, venture capital fund investments, foreign exchange transactions etc.

Trade receivables:

Total Trade receivable as on 31^st March,18 is Rs.12071.83 Lacs (31^st March,17 Rs.10993.90 Lacs, 01^st April, 2016 Rs.10492.95 Lacs).

Other Financial Instrument and Cash Deposits

With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances, cash, security deposits with respect to lease agreements, etc. the Company''s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these assets.

Credit risk from balances with banks is managed with the Company''s policy. The Company limits its exposure to credit risk by only placing balances with local banks. Given the profile of its bankers, management does not expect any counter party to fail in meeting its obligations. With respect to other financial instruments, the Company assess the risk of recoverability on periodic basis and makes required provision whenever necessary.

d. Liquidity risk

The Company currently has sufficient cash on demand to meet expected operational expenses.

Note 6: Capital Management (Ind AS 1)

b. With respect to office given on lease, operating lease income recognized in the Statement of Profit and Loss Account for the year ended 31^st March,18 amounting to Rs.395.57 Lacs (For the year ended 31^st March,17 Rs.235.53 Lacs)

c. General Description of Leasing Agreements:

- Nature of Leased Assets: Offices, Factory, Flats, Godowns.

- Future Lease Rentals are determined on the basis of agreed terms.

- At the expiry of lease terms, the Company has an option to return the assets or extend the terms by giving notice in writing.

- Lease agreements are generally cancelable and are renewable by mutual consent on mutually agreed terms.

Note 7: Corporate Social Responsibility:

Expenditure incurred in cash on Corporate Social Responsibility activities, included in different heads of expenses in the Statement of Profit and Loss is Rs.25.18 Lacs ( 31^st March,17 Rs.67.60 Lacs).

The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended 31^st March,18 is Rs.94.19 Lacs ( 31^st March,17 Rs.89.92 Lacs)

Note 8: Information as per the requirement of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of inviting information from its vendors for their status under âThe Small, Medium and Micro Enterprises Development Act 2006â , however in absence of any information, no disclosures have been made in this regards

Note 9: Research & Development:

Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss is Rs.235.93 Lacs and Capital Expenditure in Fixed Assets is Rs.37.72 Lacs. ( 31^st March,17, in Statement of Profit & Loss:- Rs.187.60 Lacs and Capital Expenditure :- Rs.12.71 Lacs ).

Note 10:

In Mar 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115 ''Revenue from Contracts with Customers'', which replaces Ind AS 11 ''Construction Contracts'' and Ind AS 18 ''Revenue''. Except for the disclosure requirements, the new standards will not materially impact the Company''s financial statements. The amendment will come into force from 1^st April,18.

Note 11: First Time Adoption of Ind AS (Ind AS 101):

As stated in Note 1, these financial statements, for the year ended 31^st March,18, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31^st March,17, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (IGAAP).

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

Exemptions Availed:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:

(a) Deemed cost for property, plant and equipment and intangible assets:

The Company has elected to continue with the carrying value of all of its plant and equipment and intangible assets as recognized as of 1^st April,2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

(b) Fair Value of Financial Assets and liabilities:

As per Ind AS exemption the Company has not fair valued the financial assets and liabilities retrospectively and has measured the same prospectively.

Notes to the Reconciliation of equity as at 1^st April,16 and 31^st March,17 and Total Comprehensive Income for the year ended 31^st March,17:

(a) Property, Plant and Equipment:

As per Ind AS 16, spare parts, stand- by equipment and servicing equipment are recognized as Property, Plant and Equipment (''PPE'') when they meet the following criteria:

-Are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

-Are expected to be used during more than one period.

Based on the above provision, stores and spares satisfying above criteria are de-recognized from Inventory and capitalized as PPE from the date of purchase.

(b) Investments:

The Company has measured investments at Fair Value and has classified the same at Fair Value through Profit and Loss (FVTPL) and Fair value through Other Comprehensive Income (FVOCI). The resulting fair value changes of these investments have been recognized in retained earnings (net of related deferred taxes) as at the date of transition and subsequently in the Statement of Profit and Loss for the year ended 31^st March,17.

(c) Fair Valuation of Security Deposits:

Interest-free deposits have been fair valued and are discounted using an appropriate current market rate. The difference between the nominal value and the fair value of the deposit under the lease is considered as Prepaid Rent, which is unwinded on a straight line basis over the period of the lease. The company also recognizes interest expense using the discounting rate, over the life of the deposit. These adjustments are reflected in retained earnings as at the date of transition and subsequently in the statement of profit or loss.

(d) Allowances for Credit Losses:

For Provision of Credit Losses on Trade Receivables, the Company has adopted Simplified Approach where by provision of expected credit losses is made using a provision matrix to mitigate the risk of default payments.

(e) Revenue from Operations:

i) Under IGAAP, cash discounts and other discounts directly attributable to sales was recognized as part of other expenses which has been adjusted against the revenue under Ind AS during the year ended 31^st March,16.

(ii) Under IGAAP, revenue was presented net of excise duty. However, as per Schedule III to the Companies Act, 2013, revenue from operations is to be shown inclusive of excise duty. Accordingly, excise duty has been included in revenue from operations and shown separately as an expense.

(f) Other Expenses and Depreciation: Stores and Spares

With reference to Point (a), Stores and Spares consumption has been reversed from Profit & Loss which has been capitalized as PPE.

Depreciation on capitalized stores and spares till the date of transition has been accounted for in Retained Earnings and has been charged to Statement of Profit and Loss for the year ended 31^st March,16.

(g) Deferred Tax:

IGAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under IGAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred Tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or profit and loss respectively.

(h) Actuarial Gain/Loss:

Both under IGAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis.

Under IGAAP, the entire cost, including actuarial gains and losses, are charged to Statement of Profit and Loss. Under Ind AS, remeasurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

(i) Reclassifications:

Reclassification and regrouping has been done basis the requirement of particular Ind As and Division II of Schedule III of the Companies Act, 2013 providing the framework for the preparation and presentation of Financial Statements in accordance with Ind ASs.

Mar 31, 2017

1 INFORMATION ABOUT BUSINESS SEGMENTS

The Company is operating in one segment only i.e. Manufacturing of Masterbatches.

2 RELATED PARTY DISCLOSURES

(a) List of related parties and relationships :

A. Associate Concern.

Kabra Extrusiontechnik Ltd.

B. Enterprise over which Executive Directors exercise significant influence.

Kabra Gloucester Engineering Limited, Kolsite Corporation LLP, Kolsite Industries, Kolsite Packaging Systems Pvt. Ltd., Maharashtra Plastic & Industries, Maharastra Plastic Industries, Rambalab Ramnarayan, Shima Polymers, Smartech Global Solutions Ltd.,

C. Executive Directors, Directors, their Relatives.

Shri S V Kabra, Shri S N Kabra, Shri Anand S Kabra, Shri Varun S Kabra, Smt Veenadevi S Kabra, Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

3. AS REQUIRED BY REVISED ACCOUNTING STANDARD 4, THE COMPANY HAS NOT RECOGNISED DIVIDEND DECLARED AFTER THE BALANCE SHEET DATE.

4 PREVIOUS YEARâS FIGURES HAVE BEEN REGROUPED/RECAST WHEREVER NECESSARY.

Mar 31, 2016

Note 1 : Related Party Disclosures

(a) List of related parties and relationships:

A. Associate Concern

Kabra Extrusiontechnik Ltd.

B. Enterprises over which Executive Directors exercise significant influence.

Rambalab Ramnarayan, Maharastra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd., Kolsite Industries., Kolsite Corporation LLP, Kolsite Packaging Systems Pvt. Ltd., Kabra Gloucester Engineering Limited,Shima Polymers.

C. Executive Directors, Directors and their Relatives

Shri S V Kabra, Shri S N Kabra, Shri A S Kabra, Shri Varun S Kabra, Smt. Veenadevi S Kabra,

Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

Note 2 : Previous year''s figures have been regrouped/recast wherever necessary.

Mar 31, 2015

Rs.in Lacs

NOTE 1 : Contingent Liabilities not provided for: 2015 2014

Bank Guarantees 208.73 45.80

Letter of Credit 449.66 136.37

Claim against the company not acknowledged as debts 26.00 26.00

Service Tax matter under dispute 470.63 417.60

NOTE 2 : Amount Due to Small, Medium and Micro enterprises:

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regards.

Note 3 : Related Party Disclosures

(a) List of related parties and relationships:

A. Associate Concern

Kabra Extrusion Technik Ltd.

B. Enterprise over which key management personnel exercise significant influence.

Rambalab Ramnarayan, Maharashtra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd., Kolsite Industries., Kolsite Corporation LLP, Kolsite Packaging Systems Pvt. Ltd., Kabra Gloucester Engineering Ltd., Shima Polymers

C. Key Management Personnel and Relatives, Chairman & Managing Director, Directors , Related to Directors

Shri S V Kabra, Shri S N Kabra, Shri A S Kabra, Shri Varun S Kabra, Smt. Veenadevi S Kabra,

Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

Notes :

(1) This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the meeting.

(2) For the Resolutions, Explanatory Statement and Notes, please refer to the Notice of the 24th Annual General Meeting

(3) It is optional to put a 'X' in the appropriate column against the Resolutions indicated in the Box. If you leave the 'For' and

'Against' column blank against any or all Resolutions, your proxy will be entitled to vote in the manner as he / she thinks appropriate.

Mar 31, 2014

1 Contingent Liabilities not provided for

Bank Guarantees 45.80 91.60

Letter of Credit 136.37 253.49

Less- Fixed deposits shown under the head cash and - 6.00 bank balance include deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks Net amount 182.17 339.09

Disputed income tax demand - 6.10

Claim against the company not acknowledge as debts 26.00 -

Service tax matter under dispute 417.60 415.19

2 Amount Due to Small, Medium and Micro Enterprises

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regards.

3 Information about Business Segments

The company is operating in only one segment only i.e. Manufacturing of Materbatches.

4 Related Party Disclosures

(a) List of related parties and relationships:

Relation Parties

A. Associate Concern Kabra Extrusiontechnik Ltd.

B. Enterprise over which key management personnel Kolsite Industries., Kolsite Corporation LLP, exercise significant influence. Kolsite Packaging Systems Pvt. Ltd., Kabra

Gloucester Engineering Limited, Maharashtra Plastic Industries, Maharashtra Plastic & Industries, Rambalab Ramnarayan, Smartech Global Solutions Ltd.

C. Key Management Personnel and Relatives, Chairman & Shri S V Kabra, Shri S N Kabra, Shri A S Kabra, Managing Director, Directors , Related to Directors Shri Varun S Kabra, Smt. Veenadevi S Kabra,

Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

5 Disclosure for operating leases:

The Company has taken on lease factory at Daman, Mumbai office & residential flats for employees under operating leases. The lease payments to be made in respect of non cancellable lease in future are as follows:

Mar 31, 2013

1 Contingent Liabilities not provided for

Bank Guarantees 91.60 106.80

Letter of Credit 253.49 425.87

Less : Fixed deposits shown under the head cash and cash 6.00 66.22 equivalents include deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks

Net amount 339.09 466.45

Disputed income tax demand 6.10 24.95

Service tax matter under dispute 415.19 402.97

2 Information about Business Segments

The company is operating in only one segment i.e. manufacturing of materbatches.

3 Disclosure for operating leases:

The Company has taken on lease factory at Daman, Mumbai office & residential flats for employees under operating leases. The lease payments to be made in respect of non cancellable lease in future are as follows:

4 Previous year''s figures have been regrouped/recast wherever necessary.

Mar 31, 2012

1 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.70.47 Lacs (Previous year Rs.45.61 Lacs)

(Rs.in Lacs)

As At As At 31st March, 2012 31st March,2011

2 Contingent Liabilities not provided for:

Bank Guarantees 106.80 77.56

Letter of Credit 425.88 658.50

Fixed deposits shown under the head cash and cash equivalents include 6.00 45.27 deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks

Net amount 526.68 690.79

Disputed income tax demand 24.95 24.95

Service tax matter under dispute 402.97 394.23

3 Amount Due to Small, Medium and Micro Enterprises:

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act, 2006", however in absence of any information, no disclosures have been made in this regards.

4 Disclosure in pursuance of Accounting Standard -15 (Revised) on "Employee Benefits"

a) Compensated Leave:

Privilege leave entitlements are recongnised as liability in the calender year of rendering of service as per rules of the Company. As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

b) Gratuity is administered through group gratuity scheme with Kotak Life Insurance under Kotak Gratuity Group Plan.

5 Information about Business Segments

The company is operating in only one segment i.e. manufacturing of masterbatches.

6 Related Party Disclosures

(a) List of related parties and relationships:

A. Associate Concern and Promoter Companies

Kabra Extrusiontechnik Ltd.

B. Enterprise over which key management personnel exercise significant influence.

Ganges Urethane LLP, Kabra Gloucester Engineering Ltd., Kolsite Industries, Kolsite Maschine Fabrik Pvt. Ltd., Kolsite Packaging Systems Pvt. Ltd., Maharshree Plastic Industries Pvt. Ltd., Maharastra Plastic Industries, Maharashtra Plastic & Industries, Rambalab Ramnaran, Smartech Global Solutions Ltd., Wonderworld Resorts Ltd.,

C. Key Management Personnel and Relatives

Shri S. V. Kabra-Chairman and Managing Director, Shri S. N. Kabra-Vice Chairman and Managing Director, Shri A. S. Kabra-Executive Director, Shri Varun S. Kabra, Smt Veenadevi S. Kabra, Smt Saritadevi S. Kabra, Smt Ekta A. Kabra, Miss Khushi A. Kabra

7 Previous year's figures have been regrouped/recast wherever necessary

Mar 31, 2011

1. Capital Commitments:

Estimated Amount of contracts remaining to be executed on capital account & not provided for is Rs 45,60,675/- (Previous year Rs 1,35,27,571/-)

2. Contingent Liabilities not provided for:

Year Ended March 31 (Rs.)

Particulars 2011 2010

Bank guarantees 77,56,000 67,20,000

Letter of Credit 6,58,50,158 64,09,383

Fixed deposits shown under the head cash and bank balances include 45,26,967 55,03,406 deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks Net amount 6,90,79,191 76,25,977

Bills Discounting 13,36,27,920 7,26,49476

Uncalled Amount On Investments 1,15,20,000 1,15,20,000

Disputed income tax demand 24,95,000 24,95,000

Service Tax matter under dispute 3,94,22,628 3,11,31,665

3. Amount Due to Small, Medium and Micro enterprises:

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regard.

4. Disclosure in pursuance of Accounting Standard - 15 (Revised 2005) on "Employee Benefits"

a) Compensated Leave:

Privilege leave entitlements are recognised as liability in the calendar year of rendering of service as per rules of the Company. As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

b) Gratuity is administered through group gratuity scheme with Kotak Life Insurance under Kotak Gratuity Group Plan.

5. Information about Business Segments

The company is operating in one segment only i.e. Masterbatches.

6. Related Party Disclosures

(A) List of related parties and relationships:

Relation Parties

A. Associate Concern & Promoter Companies Kabra Extrusiontechnik Ltd.

B. Enterprise over which key management personnel exercise significant influence.

Rambalab Ramnaran, Kabra Gloucester Engineering Ltd.,

Kolsite Machine Fabrik Pvt. Ltd.,

Mahashree Plastic Industries Pvt. Ltd.,

Maharashtra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd.,

Kolsite Industries, Wonderworld Resorts Ltd.,

Ganges Urethane Pvt. Ltd.

C. Key Management Personnel and Relatives Chairman & Managing Director Related to Directors

Shri S V Kabra, Shri S N Kabra, Shri A S Kabra

Smt Veenadevi S Kabra, Smt Saritadevi S Kabra, Smt Ekta

A Kabra, Shri Varun S Kabra

7. Previous year's figures have been regrouped/recast wherever necessary.

Mar 31, 2010

Current Year (Rs.) Previous Year (Rs.)

1.a)Contingent Liabilities not provided for in respect of i) Guarantee issued 67,20,000 67,20,000

ii) Letter of Credit 64,09,383 14,53,006

iii) Bills Discounting 7,28,49,476 2,08,39,858

iv) CST matters -- 1,07,546

v) Service Tax matters 3,11,31,665 --

11,69,10,524 2,91,20,410

2) In the absence of intimation from the vendors with regard to their registration (Filing of Memorandum) under "The Micro, Small & Medium Enterprise Development Act, 2006 (27 of 2006)" and in view of the terms of payments not exceeding 45 days no liability exists at the close of the year and hence no disclosure have been made in this regard.

3) The Company has provided for Excise Duty Liability on finished goods amounting to Rs. 1,29,66,478/- ( P.Y. Rs 72,75,328/-). However this does not have any impact on the profit for the year.

4) As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

5) Amount of borrowing cost capitalised as per AS -16 during the year was Rs. Nil ( P. Y. Rs. NIL)

6) The company is operating only in one segment hence no segment wise disclosure as per AS -17 is provided.

7) As required by AS -18 "Related Party Disclosure" are given below.

A) Names of Related Parties & Description of relationship with whom there were "NO TRANSACTIONS" during the year.

i) ASSOCIATE CONCERNS :

Kabra Gloucester Engineering Ltd.,

ii) CONCERNS IN WHICH DIRECTORS ARE INTERESTED :

Rambalab Ramnaran, All Purpose Consultations & Services Pvt. Ltd., See Diff. Software Solutions (India) Pvt. Ltd., Harekrishna Harerama Trading Company Pvt. Ltd., Welworth Investments & Trading Company Pvt. Ltd., Elegant Trading & Investment Company Pvt. Ltd., Ideal Consultancy Services Pvt. Ltd., Borouge (India) Pvt. Ltd., Innovations Consultancy India Pvt. Ltd., Panoramic Investment Advisors Pvt. Ltd.

B) Names of Related Parties & Description of relationship with whom there were "TRANSACTIONS" during the year.

i) ASSOCIATE CONCERNS : Kolsite Maschine Fabrik Pvt. Ltd., Kabra Extrusiontechnik Ltd., Mahashree Plastic Industries Pvt. Ltd., Maharastra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd., Kolsite Industries, Wonderworld Resorts Limited

ii) DIRECTORS : Shri S. V. Kabra, Shri S. N. Kabra, Shri H. S. Sanwal, Shri A.S. Kabra. Shri P. R. Singhvi, Dr. Y. B.Vasudeo, Shri S.K. Parab.

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