Notes to Accounts of Polycon International Ltd.

Mar 31, 2024

2.3.12 Provisions, Contingent Liabilities and
Contingent Assets

a Provisions

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

• If the effect of the time value of money is material,
provisions are discounted using equivalent period
government securities interest rate.

• Provisions are reviewed at each balance sheet date
and are adjusted to reflect the current best estimate.

b Contingencies

• Contingent liabilities are 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 or a present obligation that arises
from past events where it is either not probable that
an outflowof resources will be required to settle or a
reliable estimate of the amount cannot be made.
Information on contingent liabilities is disclosed in the
Notes to the Financial Statements.

• Contingent assets are not recognised in the books of
the accounts but are disclosed in the notes. However,
when the realisation of income is virtually certain,
then the related asset is no longer a contingent asset,
but it is recognised as an asset and the
corresponding income is booked in the Statement of
Profit and Loss.

2.3.13 Taxation

• Income tax expense represents the sum of Current
Tax and Deferred tax. Tax is recognised in the
Statement of Profit and Loss, except to the extent
that it relates to items recognised directly in Equity or
Other comprehensive income, in such cases the tax
is also recognised directly in equity or in other
comprehensive income.

• Current tax provision is computed for Income

calculated after considering allowances and
exemptions under the provisions of the Income Tax
Act 1961. Current tax assets and current tax liabilities
are off set and presented as net.

• Deferred tax is recognised on differences between
the carrying amounts of assets and liabilities in the
Balance sheet and the corresponding tax bases used
in the computation of taxable profit. Deferred tax
liabilities are generally recognised for all taxable
temporary differences, and deferred tax assets are
generally recognised for all deductible temporary
differences. Deferred tax assets and liabilities are
measured at the applicable tax rates. Deferred tax
assets and deferred tax liabilities are off set, and
presented as net.

2.3.14 Cash and cash equivalents

Cash and cash equivalents include cash in hand and
at bank, deposits held at call with banks.

For the purpose of the Statement of Cash Flows, cash
and cash equivalents consists of cash and balance
with bank in current account.

2.3.15 Financial instruments - initial recognition,
subsequent measurement and impairment

A financial instrument is any contract that gives rise to
a financial asset of one entity and a financial liability or
equity instrument of another entity.

a Financial Assets

• Financial Assets are measured at amortised cost or
fair value through Other Comprehensive Income or
fair value through Profit or Loss, depending on the
judgment of the management for managing those
financial assets and the assets'' contractual cash flow
characteristics.

• Subsequent measurements of financial assets are
dependent on initial categorisation. For impairment
purposes, financial assets are assessed individually.

De-recognition of financial Asset

A financial asset is primarily derecognised (i.e. removed from

the balance sheet) when:

• The rights to receive cash flows from the asset have
expired, or

• The Company has transferred its rights to receive
cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without
material delay to a third party under a ‘pass-through''
arrangement; and either (a) the Company has
transferred substantially all the risks and rewards of
the asset, or (b) the Company has neither transferred
nor retained substantially all the risks and rewards of
the asset, but has transferred control of the asset.
When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards of
ownership.

Impairment of financial assets (other than fair value)
In accordance with Ind AS 109, the Company applies expected
credit loss (ECL) model for measurement and recognition of
impairment loss on the following financial assets and credit
risk exposure:

Financial assets that are debt instruments, and are measured
at amortised cost e.g., loans, debt securities, deposits, trade
receivables and bank balance

Trade receivables:

• A receivable is classified as a ‘trade receivable'' if it is
in respect to the amount due from customers on
account of goods sold or services rendered in the
ordinary course of business. Trade receivables are
recognised initially at fair value and subsequently
measured at amortised cost , less expected credit
loss if any.

• Impairment is made for the expected credit losses.
The estimated impairment losses are presented as a
deduction from the value of trade receivables and the
impairment losses are recognised in the Statement of
Profit and Loss under “Other expenses”.

• Subsequent changes in assessment of impairment
are recognised in ECL and the change in impairment
losses are recognised in the Statement of Profit and
Loss under “Other Expenses”.

• Individual receivables which are known to be
uncollectible are written off by reducing the carrying
amount of trade receivables and the amount of the
loss is recognised in the Statement of Profit and Loss
under “Other Expenses”.

• Subsequent recoveries of amounts previously written
off are credited to “Other Income”.

Investments in Equity Instruments

• Investments in Equity Instruments have been valued
at their fair values through Profit and Loss, as on the
closing date. The fair value has been taken from the
stock exchange where the shares are listed.
Investments have also been made in NSC deposits,
which have been carried at their book values.

b Financial liabilities

At initial recognition, all financial liabilities other than
those valued at fair value through profit and loss are
recognised at fair value less transaction costs that
are directly related to the issue of financial liability.
Transaction costs of financial liability carried at fair
value through profit or loss are expensed in profit or
loss.

Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading. The Company has not
designated any financial liabilities upon initial measurement
recognition at fair value through profit or loss.

Financial liabilities measured at amortised cost

After initial recognition, interest free Security Deposits and

other financial liabilities are valued at Amortised cost using

Effective Interest Rate method (EIR Method). The EIR
amortisation is included in finance costs in the Statement of
Profit and Loss. Any difference between the proceeds (net
of transaction costs) and the redemption amount is recognised
in profit or loss over the period of the borrowings using the
effective interest method.

Trade and other payables

A payable is classified as ‘trade payable'' if it is in respect of
the amount due on account of goods purchased or services
received in the normal course of business. These amounts
represent liabilities for goods and services provided to the
Company prior to the end of financial year which are unpaid.
Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the
reporting period. They are recognised initially at their fair
value and subsequently measured at amortised cost using
the effective interest method.

De-recognition of financial liability

A financial liability is derecognised when the obligation under
the liability is discharged or cancelled or expires. The
difference between the carrying amount of a financial liability
that has been extinguished or transferred to another party
and the consideration paid is recognised in profit or loss as
"Other Income" or "Finance Expense".

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net
amount is reported in the consolidated balance sheet if there
is a currently enforceable legal right to offset the recognised
amounts and there is an intention to settle on a net basis, to
realise the assets and settle the liabilities simultaneously.

2.3.16 Intangible assets

Intangible assets have been shown at cost, less
accumulated amortisation and impairments, if any.

2.3.17 Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to the
chief operating decision maker.

The Company is principally is engaged in the business
of manufacture and sale of pets and other Plastic
Products and there are no other reportable segments.

2.4 CRITICAL ACCOUNTING ESTIMATES,
ASSUMPTIONS AND JUDGEMENTS

The estimates and judgements used in the preparation
of the financial statements are continuously evaluated
by the Company and are based on historical
experience and various other assumptions and factors
(including expectation of future events) that the
Company believes to be reasonable under the existing
circumstances. Differences between actual results
and estimates are recognised in the period in which
the results are known/materialised.

The said estimates are based on the facts and events
that existed as at the reporting date, or that which
occured after the date but provide additional evidence
about the conditions existing at the reporting date.

a Property, plant and equipment

• Management assesses the remaining useful lives
and residual value of property, plant and equipment.
Management believes that the assigned useful lives
and residual value are reasonable.

b Income taxes

• Management judgment is required for the calculation
of provision for income taxes and deferred tax
assets and liabilities.

• The Company reviews at each balance sheet date
the carrying amount of deferred tax assets. The
factors used in estimates may differ from actual
outcome which could lead to significant adjustment
to the amounts reported in the standalone financial
statements.

c Contingencies

• Management judgement is required for estimating
the possible outflow of resources, if any, in respect
of contingencies/claim/litigations against the
Company as it is not possible to predict the outcome
of pending matters with accuracy.

d Impairment of accounts receivable and

advances

• Trade receivables carry interest and are stated at
their fair value as reduced by appropriate
allowances for expected credit losses. Individual
trade receivables are written off when management
deems them not to be collectible. Impairment is
recognised for the expected credit losses.

e Employee benefit expenses

• Actuarial valuation for gratuity liability of the
Company has been done by an independent
actuarial valuer on the basis of data provided by
the management and assumptions used by the
actuary. The data so provided and the assumptions
used have been disclosed in the notes to accounts.

f Discounting of Security deposit, and other

long term liabilities

• For majority of the security deposits received, the
timing of outflow, as mentioned in the underlying
contracts, is not substantially long enough to
discount. The treatment would not provide any
meaningful information and would have no material
impact on the financial statements.

g Government Grants

Grants from the government are recognized are
fair value where there is reasonable assurance
that the grant will be received and the company will
comply with all attached conditions.Government
grants relating to the purchase of property, plant
and equipment are included in non-current liabilities
as deferred income and are credited to Profit and
Loss on a straight - line basis over the expected
lives of related assets and presented within other
income.

37 FINANCIAL RISK MANAGEMENT

The Company''s activities expose it to a variety of financial
risks i.e. Market Risk, Liquidity Risk and Credit Risk.

The Company''s board of directors has overall
responsibility for the establishment and oversight of the
Company''s risk management framework.

A. Market risk

Foreign Currency Risk:

• There are no currency rate risk on the Company since all
the transactions are done in the functional currency (INR)
and the Company has not taken any loans or borrowings
from the market in foreign currency.

• Interest Rate Risk:

The exposure of the Company''s borrowing to interest
rate charges at the end of the reporting period is on the
amount of outstanding balance of cash credit facilities
from State Bank Of India. The interest rates are linked to
1 year MCLR and are changed at the time of annual
renewal. The rates will either increase or decrease
depending on changes in RBI''s and Bank''s policies.

• Price Risk:

The Company faces price risk due to change in price of
Raw Materials from time to time. To shield itself from
them, all sales contracts and orders are variable to
changes in prices from time to time. They are based on
the price of raw materials at the beginning of each
month or weighted average price of last 3 months.

B. Liquidity Risk

• Prudent liquidity risk management implies maintaining
sufficient cash and marketable securities and the
availability of funding to meet obligations when due.
Management monitors rolling forecasts of the company''s
liquidity position and cash and cash equivalents on the
basis of expected cash flows. The Company''s objective
is to at all times maintain optimum levels of liquidity to
meet its cash requirements.

C. Credit risk

• Credit risk is the risk of financial loss to the Company if a
customer fails to meet its contractual obligations, and
arises principally from the Company''s receivables from
customers. The carrying amounts of financial assets
represent the maximum credit risk exposure.

• Assets are written off when there is no reasonable
expectation of recovery. The Company write offs debtors
when they fail to make contractual payment greater than
a reasonable limit post due.

• The Company considers the probability of default upon
initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis
throughout each reporting period. To assess whether
there is a significant increase in credit risk the Company
compares the risk of a default occuring on the asset as at
the reporting date with the risk of default as at the date
of initial recognition. It considers available reasonable
and supportive forwarding-looking information.

Trade and Other Receivables

Credit risk refers to the risk of default on its obligation by the

counter party resulting in financial loss. The maximum

exposure to the credit risk at the reporting date is primarily

from trade receivables amounting to Rs. 873.45 Lakhs, Rs.
871.88 Lakhs and Rs. 1090.21 Lakhs as at March 31,
2024, March 31, 2023 and March 31, 2022, respectively. The
Company''s exposure to credit risk is influenced mainly by the
individual charactersticts of each customer. The management
also considers the factors that may influence the credit risk of
its customer base, including the default risk of the industry.
The Company monitors its exposure to credit risk on an ongoing
basis at various levels. Outstanding customer receivables are
regularly monitored.

Due to the geographical spread and the diversity of the
Company''s customers, the Company is not subject to any
significant concentration of credit risks at balance sheet date.

Cash and Cash Equivalents and Bank Deposits

Credit risk related to cash and cash equivalents and bank deposits
is managed by only accepting highly rated banks and diversifying
bank deposits accounts in different banks across the country.

Cash Credit Facilities

Cash credits facilities from State Bank Of India, Jhotwara
Industrial Area Branch, Jhotwara ( Jaipur) together with interest
and other charges thereon, is secured by mortgage of
company''s land and building together with plant and
machinery thereon both present and future and by way of a
hypothecation charge over all movable assets including book
debts, stock etc. of the company and secured by personal
guarantee of two directors of the company. Cash credit is
payable on demand and carries interest rate @ 9.50%- 10.15%
p.a. on monthly rest.

38 CAPITAL RISK MANAGEMENT
Objective

The primary objective of the Company''s capital management
is to maximize the shareholder value. i.e. to provide maximum
returns to the shareholders. The Company''s primary objective
when managing capital is to ensure that it maintains an efficient
capital structure and healthy capital ratios and safeguard the
Company''s ability to continue as a going concern in order to
support its business and provide maximum returns to the
shareholders. The Company also proposes to maintain an
optimal capital structure to reduce the cost of capital. No
changes were made in the objectives, policies or processes
during the year ended March 31, 2024 and March 31, 2023.

Policy

The Company manages its capital structure and makes
adjustments in light of changes in economic conditions and
the rules and regulations framed by the Government under
whose control the Company operates.

Process

The Company manage its capital by maintaining sound/
optimal capital structure financial ratios, such as net debt-to-
equity ratio on a monthly basis and implements capital structure
improvement plan when necessary. Debt-to-equity ratio as of
March 31, 2024 and March 31, 2023 is as follows:

40 CONTINGENT LIABILITIES

1 Rs. 11,13,549/- deposited with Revenue Board, Ajmer
under Protest towards appeal against Stamp Duty
Demand. The Board has awarded decision in
Company''s favour. Refund of the same is under
process.

2 The SBI has debited by Rs. 78,72,933/- towards interest
which is pending with appropriate authority. The same
will be reversed on the approval of appropriate authority

* Company does not have any capital commitments during
the reported years.

41 FAIR VALUE HEIRARCHY

The following table provides the fair value measurement
hierarchy of Company''s asset and liabilities, grouped
into Level 1 to Level 3 as described below:

a Quoted prices/published NAV (unadjusted) in active
markets for identical assets or liabilities (level 1). It
includes fair value of financial instruments traded in
active markets and are based on quoted market prices
at the balance sheet date.

b Inputs other than quoted prices included within level 1
that are observable for the asset or liability, either directly
(that is, as prices) or indirectly (that is, derived from
prices) (level 2). It includes fair value of the financial
instruments that are not traded in an active market (for
example, interest free security deposits) is determined
by using valuation techniques. These valuation
techniques maximise the use of observable market data
where it is available and rely as little as possible on the
company specific estimates. If all significant inputs
required to fair value an instrument are observable then
instrument is included in level 2.

c Inputs for the asset or liability that are not based on
observable market data (that is, unobservable inputs)
(level 3). If one or more of the significant inputs is not
based on observable market data, the instrument is
included in level 3.

42 Relationship with Struck off Companies:

Company has no transactions with companies struck
off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956.

43 Utilisation of Borrowed Funds and Share
Premium:

A The Company has not advanced or loaned or invested
funds (either borrowed funds or share premium or any
other sources or find of funds) to any other person(s)
or entity(ies). Including foreign entities (intermediaries)
with the understanding (whether recored in writting or
otherwise)that the intermediary shall:

(a) Directly or indirectly lend or invest in other persons
or entities indentified 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.

B The Company has not received any funds from any
person(s) or entity(ies), including foreign entities
(funding party) with the understanding (whether recored
in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons
or entities indentified in any manner whatsoever by or
on behalf of the funding party (ultimate beneficiaries) or

(b) Provide any guarantee, security or the like to or on
behalf of the ultimate beneficiaries.

44 Compliance with Approved Scheme(s) of
Arrangements:

No Scheme of arrangement has been approved by the
competent Authority in terms of Sections 230 to 237 of
the Companies Act, 2013, hence this is not applicable.

45 Details of Crypto Currency or Virtual Currency:

The Company has not traded or Invested in crypto
currency or virtual currency during the current or
previous year.

46 Registration of Charges or Satisfaction with
registrar of Companies:

There are no charges or satisfaction yet to be registered
with Registrar of Companies beyond the statutory period.

47 Compliance with Number of Layers of Companies:

The Company Complies with the number of layers
prescribed under clause (87) of Section 2 of the Act
read with Companies (restriction on Number of Lauers)
Rules, 2017.

48 The Company has changed its technique for the
measurement of the value of finished goods and restated
the respactive financial statement. Due to restatement
figures for the previous period''s has been regrouped/
recast wherever necessary to conform with the current
year presentation.

In terms of our separate Audit Report of even date For & on behalf of the Board

For S.R. Goyal & Co. RAJIV BAID VARUN BAID CS GAJANAND GUPTA

Chartered Accountants DIN:00212265 DIN:08268396 CFO &

FRN : 001537C CHAIRMAN & MANAGING EXECUTIVE DIRECTOR COMPANY SECRETARY

DIRECTOR

CA A.K. Atolia

Partner
M.NO. 077201

UDIN : 24077201BKEQDW1156
Place : JAIPUR
Dated: 30.05.2024

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Mar 31, 2015

1. Term Loan from SBBJ is secured by way of First Charge on certain Plant & Machinery acquired out of said term loan and personal guarantee of two Directors of the Company and also secured by way of second charge on entire present & future current & fixed assets of the Company. The said loan is repayable in quarterly installments of Rs. 14.65 Lac. The last of which is due in June, 2020. Rate of Interest on Term Loan is at 13.25% P.A.

2.1 Term Loan from RFC

2.2 Security Details

Term Loans from Rajasthan Financial Corporation (RFC) are secured by equitable mortgage on Fixed Assets of the company both present & future situated at Jaipur and Chopanki (Bhiwadi) and also secured by personal guarantee of two Directors of the company

2.3 Car Loan from Kotak Mahindra Prime Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthly installment of Rs. 30200/- (including Interest) The last of which is due in June, 2018. Rate of interest on Car Loan is @ 12.60% P.A.

2.4 Car Loan from ICICI Bank Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthly installment of Rs. 62000/- (including Interest). The last of which is due in February, 2016. Rate of interest on Car Loan is @ 10.4%P.A.

3. Secured against hypothecation of all current and noncurrent assets including stock of raw materials, work in process, finished goods and book debts both present and future.

4. 1st charge over Plant & Machinery financed for different Machineries installed at Jaipur & Bhiwadi Plant.

5. 2nd charge on fixed assets of the company i.e all immovable properties held with the company under its Jaipur & Bhiwadi Plant.

6. Cash Credit Limit from banks Carry Interest ranging between 12% - 13% p.a, computed on monthly bases on actual amount utilized, and are repayable on demand.

*Dues to Micro, small and Medium enterprises have been determined to the extent such parties have been identified on the basis of information collected. The total amount remaining unpaid as at the end of the year is Rs. 28.81 lacs (Previous Year 56.34 lacs) (Refer Note 31)

7. SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

8. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Develop- ment Act, 2006

The Ministry of Micro, Small & Medium Enterprises has issued an office Memorandum Dated 26.08.2008, which recommends that Micro and small Enterprises Should mention in their correspondence with its customers, the entrepreneurs memorandum number as allocated after filling of the memorandum. Accordingly. the disclosure in respect of the amounts payable to such enterprises as on 31.3.2015 and 31.03.2014 has been made in the financial statements based on the information provided by the management. Based on the information currently available with the company, There are no dues payable to micro and Small Suppliers as defined in the Micro, Small And Medium Enterprises Development Act,2006.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Inventories, loans & advances, trade receivables/payables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet. The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management's opinion, in the event of any disparity in the balances, any consequential adjustments required on reconciliation of the balances, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the reconciliation is completed.

A fire broke out on 11th February, 2013 at Company's premises located at F-954(A), Chopanki Industrial Area, Bhiwadi, Distt. Alwar resulted in losses amounting to Rs. 49.01 lacs for inventories and Rs. 232.77 lacs for fixed assets. The claim had been lodged witht he insurance company considering the re- statement clause covered under the insurance Policy Cover Note issued by the Insurance Company. Against the said claim, company had received Rs 37.24 lacs and Rs 92.67 lacs towards inventories and fixed assets respectively. Now for the balance claim, company had approached to insurance company to revocation of arbitration clause and matter still is pending with the insurance company.

Pending receipt of claim from the insurance company amounting to Rs 70.29 lacs both for inventories and fixed assets as per books (Rs 151.87 lacs as per Re-statement clause of Insurance co.) has been shown as insurance claim receivable as Long term loans and advances under the head current assets. Short fall/surplus, if any, will be accounted for when the claim is finally settled by the arbitrators.

Note 9

Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

Note 10

The Company carries Rs. 94.98 Lacs as receivables from demerged company M/S Vinayak Polycon International Limited by virtue of demerger scheme of Polycon International Limited approved by Rajasthan High Court order dated

Note 11 RELATED PARTY TRANSACTIONS

Names of related parties & relationship

Names of related parties & relationship

a) Jai Sinter Polycon Pvt. Ltd. Relatives of Directors are Director

b) Crystal Packaging Relatives of Directors are Partner

c) Bassi Mechanical Works Relatives of Directors are Partner

d) Shri Varun Baid Held office of profit

e) Ms Varsha Baid Held office of profit

Key Management Personnel (KMP)

Shri Lal Chand Baid

Shri Rajiv Baid

Enterprise over which key management personnel and their

relatives are able to exercise significant influence

Bassi Mechanical Works, Jaipur

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Mar 31, 2014

Note 01 COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed at the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan.

Note 02 SHARE CAPITAL

b) Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share. The Board of Directors have not declared Dividend during the year under review due to marginal profit. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

2.1 Term Loan from Bank is secured by way of First Charge on certain Plant & Machinery acquired out of said term loan and personal guarantee of two Directors of the Company and also secured by way of second charge on entire present & future current & fixed assets of the Company. The said loan is repayable in quarterly instalments. The last of which is due in June, 2020. Rate of Interest on Term Loan is at 13.25% P.A.

2.2 Term Loans from Rajasthan Financial Corporation (RFC) are secured by equitable mortgage on fixed assets of the company both present and future, situated at Jaipur and Chopanki, Bhiwadi and also secured by Personal Guarantee of two Directors of the Company. The said loan is repayable in quarterly instalments. The last of which is due in September, 2019. Rate of interest on Term Loans range from 10.25% to 13.50% P.A.

2.3 Car Loan from Kotak Mahindra Prime Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthlly instalments. The last of which is due in June, 2018. Rate of interest on Car Loan is @ 12.60% P.A.

2.4 Car Loan from ICICI Bank Ltd. is secured by hypothecation of vehicle purchased out of said loan. The said loan is repayable in monthlly instalments. The last of which is due in February, 2016. Rate of interest on Car Loan is @ 10.4% P.A.

Note 3 SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

Note 4 CONTINGENT LIABILITIES

(Rupees in Lacs) As at As at 31.3. 2014 31.3. 2013

In respect of :

a) Excise matters disputed in appeal 0.12 0.98

b) Sales tax matters disputed in appeal 0.97 0.97

c) Bank Guarantee issued in favour of HPCL - 8.00

vi) the amount of further interest due and payable even in the succeeding year, until such date when the interest dues as above are actually paid - -

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 5

Inventories, loans & advances, trade receivables/payables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet.

The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, in the event of any disparity in the balances, any consequential adjustments required on reconciliation of the balances, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the reconciliation is completed.

Note 6

A fire broke out on 11th February, 2013 at Company''s premises located at F-954(A), Chopanki Industrial Area, Bhiwadi, Distt. Alwar resulted in losses amounting to Rs. 49.01 lac for inventories and Rs. 232.77lacs for fixed assets.

Further a massive fire take place on 01st February, 2014 at Company''s premises located at F-97,98,99 & G-96, Hirawala Industrial Area, Kanota, Jaipur resulted in losses amounting to Rs. 156.66 lacs for inventories and fixed assets. As these all assets were insured, hence corresponding claim for loss as per insurance policies have been filed with insurers. Pending receipt of claim for insurance company the amount has been shown as insurance claim receivables as short term loans and advances under current Assets. Short fall/surplus if any will be accounted for when the claim is settled by insurance companies.

Note 7 RELATED PARTY TRANSACTIONS Names of related parties & relationship

a) Jai Sinter Polycon Pvt. Ltd. Relatives of Directors are Director

b) Crystal Packaging Relatives of Directors are Partner

c) Bassi Mechanical Works Relatives of Directors are Partner

d) Shri Varun Baid Held office of profit

e) Ms Varsha Baid Held office of profit

Key Management Personnel (KMP)

Shri Lal Chand Baid

Shri Rajiv Baid

Enterprise over which key management personnel and their relatives are able to exercise significant influence Bassi Mechanical Works, Jaipur

Note 8

The Company is in the process of obtaining the Compliance Certificate regarding maintenance of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued by the Ministry of Corporate Affairs.

Note 9

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2013

Note 01 COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan and Pantnagar, Uttrakhand.

Note 02 SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors. Note 32

Inventories, loans & advances, trade receivables/payables and other current/non-current assets are reviewed annually and in the opinion of the Management do not have a value on realization in the ordinary course of business, less than the amount at which they are stated in the Balance Sheet. The response to letters sent by the Company requesting confirmation of balances has been insignificant. In the management''s opinion, in the event of any disparity in the balances, any consequential adjustments required on reconciliation of the balances, will not be material in relation to the financial statements of the Company and the same will be adjusted in the financial statements as and when the reconciliation is completed. Note 33

A fire broke out on 11th February, 2013 at Company''s premises located at F-954(A), Chopanki Industrial Area, Bhiwadi, Distt.

Alwar resulted in losses amounting to Rs. 49.01 lac for inventories and Rs. 232.77lacs for fixed assets. As these assets were insured, hence correspponding claim for loss as per insurance policies have been filed with insurers. Pending receipt of Claims from insurance Company the amount has been shown as insurance claims receivables as short term loans and advance under current assets. Shortfall/surplus if any will be accounted for when the claim is settled by Insurance Companies. Note 34 RELATED PARTY TRANSACTIONS

Names of related parties & relationship

a) Jai Sinter Polycon Pvt. Ltd. Relatives of Directors are Director

b) Crystal Packaging Relatives of Directors are Partner

c) Shri Varun Baid Held office of profit

d) Ms Varsha Baid Held office of profit

Key Management Personnel (KMP)

Shri Lai Chand Baid, Shri Rajiv Baid

Note 03

The Company is in the process of obtaining the Compliance Certificate regarding maintenance of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued bythe Ministry of Corporate Affairs.

Note 04

The Revised Schedule-VI has become effective from 01st April, 2012 for the preparation of financial statements. This has sig- nificantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been re- grouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2012

Note 01 COMPANY INFORMATION

POLYCON International Limited (the Company) is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay stock Exchange. The company is engaged in the manufacturing and trading of PET Items like PET Bottles, PET Jars, PET Preforms, Caps & Lids and LLDPE Rotomoulding Water Storage Tanks, PVC Profiles, Sections etc. Its manufacturing facilities are located in Jaipur & Bhiwadi, Rajasthan and Pant agar, Ultra hand.

a) Terms/rights attached to equity shares :

The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share. The Board of Directors not declared Dividend during the year under review due to marginal profit. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount in proportion to their shareholding.

1 Term Loan from Bank is secured by way of First Charge on certain Plant & Machinery acquired out of said term loan and personal guarantee of four Directors of the Company.

2 Term Loans from Rajasthan Financial Corporation (RFC) are secured by equitable mortgage on fixed assets and hypothecation on moveable assets of the company both present and future situated at Jaipur and Chopanki, Bhiwadi and also secured by personal guarantee of two Directors of the Company.

Cash Credit Limit from banks are secured by hypothecation of stocks and book debts of the Company, both present and future and second charge created / to be created on all the fixed assets of the Company situated at Jaipur and Chopanki,Bhiwadi and also secured by Personal Guarantee of four Directors of the Company..

Note 2 SEGMENT INFORMATION Primary

The Company is engaged in manufacture and sale of PET and other plastic products which constitutes single business segment. As per management perspective the risks and returns from its' sales do not materially vary geographically. Accordingly, there are no other business segments to be reported as per AS-17 issued under the Companies (Accounting Standards) Rules, 2006.

Note 3 CONTINGENT LIABILITIES

(Rupees in Lacs)

As at As at

31.3.2012 31.3.2011

In respect of :

a) Excise matters disputed in appeal 0.98 0.98

b) Sales tax matters disputed in appeal 0.97 0.97

c) Bank Guarantee issued in favour of HPCL 10.00 -

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the management. This has been relied upon by the auditors.

Note 4 RELATED PARTY TRANSACTIONS Names of related parties & relationship

a) Jai Sinter Poly con Pvt. Ltd. Relatives of Directors are Director

b) Bassi Mechanical Works Relatives of Directors are Partner

c) Shri Varun Baid Held office of profit

Key Management Personnel (KMP)

Shri Lai Chand Baid Shri Rajiv Baid

Enterprise over which key management personnel and their relatives are able to exercise significant influence Bassi Mechanical works, Jaipur

Note 5

The Company is in the process of obtaining the Compliance Certificate regarding maintenance of Cost Accounting Records for the current financial year as required under Notification No. G.S.R. 429(E) dated 3rd June, 2011 issued by the Ministry of Corporate Affairs.

Note 6

The Revised Schedule-VI has become effective from 01st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.

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Mar 31, 2011

1. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

2. Figures for the previous year have been reworked/regrouped and recast wherever considered necessary and are nearest to Rupees.

3. Contingent Liabilities

Bank Guarantee given to Hindustan Petroleum Corporation Ltd. at the time of application for tender Rs. NIL (previous year Rs. 12 lac).

4. The Company has obtained the entitled certificate from State level screening committee/District level screening committee in form of subsidy towards labour and interest payments in respect of expansion projects undertaken by the company at Jaipur Unit. The aforesaid amount of subsidy is not being paid in cash and are being adjusted against the sales tax liability of the company by deducting the respective head of expenses.

5. Details of Capacities, Production, Stocks and Sales (Figures in brackets relate to previous year)

(Note : Installed capacities are as assessed by Management) * Including job work of others ** Including job work by others

6 As the company involves only in manufacturing of plastic goods, therefore, Segment reporting as defined under Accounting Standard (AS)-17 is not applicable to the company

7(a) Sundry Creditors for supplies (Item No.1st to Schedule 11) includes Rs.22.15lac (Rs. 5.79 lac on 31.03.2010) due to small scale and ancillary undertakings.

(b) Name of Small Scale Industrial Undertakings to whom the company owned any sum which was outstanding more than 30 days at the end of the financial year are - Color Point, Pack Master, Perfect Pack Ltd., Vyanktesh

Corrugators Pvt. Ltd.

The above information and the amount due to all SSIs has been identified by the management based on information available and relied upon by the Auditors.

8 As stipulated in AS-28, the Company assessed potential generation of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

9 Earning Per Share

Basic and diluted earnings per share are calculated by dividing the net profit for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year

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Mar 31, 2010

1. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the values stated if realized in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

2. Figures for the previous year have been reworked/regrouped and recast wherever considered necessary and are nearest to Rupees.

3. Contingent Liabilities

Bank Guarantee given to Hindustan Petroleum Corporation Ltd. at the time of application for tender Rs. 12 lac (previous year Rs. 12 lac).

4. The Company has obtained the entitled certificate from State level screening committee/ District level screening committee in form of subsidy towards labour and interest payments in respect of expansion projects undertaken by the company at Jaipur Unit, The aforesaid amount of subsidy is not being paid in cash and are being adjusted against the sales tax liability of the company by deducting the respective head of expenses.

5 As the company involves only in manufacturing of plastic goods, therefore, Segment reporting as defined under Accounting Stan- dard (AS)-17 is not applicable to the company

6(a) Sundry Creditors for supplies (Item No. 1st to Schedule 11) in- cludes Rs.5.79 lac (Rs. 37.66 lac on 31.03.2009) due to small scale and ancillary undertakings.

(b) Name of Small Scale Industrial Undertakings to whom the com- pany owned any sum which was outstanding more than 30 days at the end of the financial year are - Compact Pack Moulders Pvt. Ltd., Perfect Pac Ltd. & Vyanktesh Corrugators Pvt. Ltd.

The above information and the amount due to all SSIs has been identified by the management based on information available and relied upon by the Auditors.

7 As stipulated in AS-28, the Company assessed potential genera- tion of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.

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Mar 31, 2009

1. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the values stated if realised in the ordinary course of business and the provisions for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

2. Figures for the previous year have been reworked/ regrouped and recast wherever considered necessary and are nearest to Rupees.

3. Contingent Liabilities

Bank Guarantee given to Hindustan Petroleum Corporation Ltd. at the time of application for tender Rs. 12.00 lac (previous year Rs. NIL).

4. The Company has obtained the entitled certificate from State level screening committee/District level screening committee in form of subsidy towards labour and interest payments in respect of expansion projects undertaken by the company at Jaipur Unit. The aforesaid amount of subsidy is not being paid in cash and are being adjusted against the sales tax liability of the company by deducting the respective head of expenses.

5 As the company involves only in manufacturing of plastic goods, therefore, Segment reporting as defined under Accounting Stan- dard (AS)-17 is not applicable to the company

6(a) Sundry Creditors for supplies (Item No.1st to Schedule 10) includes Rs. 37.66 lac (Rs. 19.24 lac on 31.03.2008) due to small scale and ancillary undertakings.

(b) Names of Small Scale Industrial Undertakings to whom the company owned any sum which was outstanding more than 30 days as the end of the financial year are - M/s. Color Point, M/s. Colour Shade, M/s. Compact Pack Moulders (P) Ltd., M/s. Empire Packages(P) Ltd., Shyam Adarsh Pack (P) Ltd., Vyankatesh Corrugators (P) Ltd., Maanekar Industries The above information and the amount due to all SSIs has been identified by the management based on information available and relied upon by the Auditors.

7 Related Party Disclosures ;

A) List of Realeted Parties & relationship

Party : Relationship

Ridam Polymers Pvt. Ltd. : Relatives of Directors are

HMI Corporation : either Partner or Director.

Jai Sinter Polycon Pvt. Ltd. : or held office of profit

Crystal Packaging Vikram Baid Vijay Baid

B) Key Management Personnel :

Shri L. C. Baid : Managing Director

Shri Bharat Baid : Executive Director .

Shri Rajiv Baid : Executive Director

8 As stipulated in AS-28, the Company assessed potential generation of economic benefits from its business units and is of the view that assets employed in continuing businesses are capable of generating adequate returns over their useful lives in the usual course of business, there is no indication to the contrary and accordingly the management is of the view that no impairment provision is called for in these accounts.