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Notes to Accounts of Polylink Polymers (India) Ltd.
Mar 31, 2025
(m) Provisions and Contingencies
Provisions
Provisions are recognised 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. Provisions are reviewed at each reporting period and are adjusted to reflect the current
best estimate.
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 outflow of resources will be required
to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is
disclosed in the Notes to the Financial Statements. Contingent assets are not recognized in
financial statements but are disclosed, if any.
(n) Employee benefits
All employee benefits payable wholly within twelve months of rendering the services are classified
as short term employee benefits, which include benefits like salaries, wages, short term
compensated absences, performance incentives, etc. and are recognized as expenses in the period
in which the employee renders the related service and measured accordingly.
Defined Contribution Plan
Employee benefits in the form of Provident Fund (with Government Authorities) are considered as
defined contribution plan and the contributions are charged to the statement of Profit & Loss of the
year when the contributions to the respective funds are due.
Defined Benefit Plan
Retirement benefit in the form of Gratuity is considered as defined benefit obligations and are
provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the
date of the Balance Sheet.
Actuarial Gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized immediately in the balance sheet with a corresponding debit or credit
to retained earnings through other comprehensive income (OCI) in the period in which they occur.
Re-measurements are not reclassified to profit or loss in subsequent periods.
All other expenses related to defined benefit plans are recognized in Statement of Profit and Loss
as employee benefits expense.
Other long-term employee benefits
All employee benefits (other than postemployment benefits and termination benefits) which do not
fall due wholly within twelve months after the end of the period in which the employees render the
related services are determined based on actuarial valuation or discounted present value method
carried out at each balance sheet date. The expected cost of accumulating compensated absences is
determined by actuarial valuation performed by an independent actuary as at 31st March every
year using projected unit credit method on the additional amount expected to be paid / availed as a
result of the unused entitlement that has accumulated at the balance sheet date. Expense on non¬
accumulating compensated absences is recognised in the period in which the absences occur.
(o) 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. The Company recognizes financial assets
and financial liabilities when it becomes a party to the contractual provisions of the instrument.
All the financial assets and liabilities are recognized at fair value on initial recognition. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and financial
liabilities that are not at fair value through profit or loss, are added to the fair value on initial
recognition.
Subsequent measurement
i. Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized 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 outstanding. Amortised cost is calculated by taking into
account any discount or premium on acquisition and fees or costs that are an integral part of the
EIR. The EIR amortisation is included in finance income in the profit or loss.
ii. Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income 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 that are solely payments of principal and interest on principal amount outstanding. Further
in cases where the Company has made an irrevocable election based on its business model, for its
investments which are classified as equity instruments the subsequent changes in fair value are
recognized in other comprehensive income.
iii. Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair value
through profit or loss.
Financial liabilities
Financial liabilities include long term and short term loan and borrowings, trade and other
payables and other eligible current and non-current liabilities.
All financial liabilities recognized initially at fair value and, in the case of loans and borrowing and
other payable, net of directly attributable transaction costs. After initial recognition, financial
liabilities are classified under one of the following two categories:
i. 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 at fair value through profit or loss are at each
reporting date at fair value with all the changes recognized in the Statement of Profit and Loss.
ii. financial liabilities measured at amortised cost
After initial recognition, such financial liabilities are subsequently measured at amortized cost by
applying the Effective Interest Rate (EIR) method to the gross carrying amount of financial
liability. The EIR amortization is included in finance expense in the profit and loss.
De-recognition of financial instruments
The company derecognizes a financial asset when the contractual rights to the cash flows from the
financial assets expire or it transfers the financial assets and the transfer qualifies for de¬
recognition under Ind AS
109. A financial liability is de-recognised when the obligation under the liability is discharged or
cancelled or expires.
(p) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holder
of the Company by the weighted average number of equity shares outstanding during the year.
Partly paid equity shares are treated as a fraction of an equity share to the extent that they are
entitled to participate in dividends relative to a fully paid equity share during the reporting period.
The weighted average number of equity shares outstanding during the year is adjusted for events
such as bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year
attributable to equity shareholders of the Company and the weighted average number of shares
outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
1.4 Significant accounting judgements, estimates and assumptions
The preparation of the Companyâs financial statements requires management to make judgements,
estimates and assumptions that affect the reported amounts of revenues, expenses, assets and
liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities.
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.
(a) Property, plant and equipment
Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule
II for plant and machinery, they are based on technical advice, taking into account the nature of
the asset, the estimated usage of the asset, the operating conditions of the asset, past history of
replacement, anticipated technological changes, manufacturersâ warranties and maintenance
support. External adviser and internal technical team assessed the useful lives, residual value and
fair value of property, plant and equipment as on 1st April 2016. Management believes that the
assigned useful lives and residual value are reasonable.
(b) Income taxes
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary
differences between the carrying values of assets and liabilities and their respective tax bases, and
unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are
recognized to the extent that it is probable that future taxable income will be available against
which the deductible temporary differences, unused tax losses, depreciation carry-forwards and
unused tax credits could be utilized.
(c) Provisions and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be
a future outflow of funds resulting from past operations or events and the amount of cash outflow
can be reliably estimated. The timing of recognition and quantification of the liability requires the
application of judgement to existing facts and circumstances, which can be subject to change. The
carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of
changing facts and circumstances.
(d) Insurance claims
Insurance claims are recognised when the Company have reasonable certainty of recovery.
Subsequently any change in recoverability is provided for.
(e) Recoverability of trade receivables
Judgements are required in assessing the recoverability of overdue trade receivables and
determining whether a provision against those receivables is required. F actors considered include
the amount and timing of anticipated future payments and any possible actions that can be taken
to mitigate the risk of non-payment.
(f) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in making these assumptions and selecting the
inputs to the impairment calculation, based on Companyâs past history, existing market conditions
as well as forward looking estimates at the end of each reporting period.
(g) 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 DCF 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.
Changes in assumptions about these factors could affect the reported fair value of financial
instruments.
a. Terms/ rights attached to issued equity shares:
i) The Company has only one class of shares referred to as equity shares having par value of Rs 5/- each. The holder of equity shares is
entitled to one vote per share.
ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be
in proportion to the number of equity shares held by the shareholders.
33. EMPLOYEE BENEFITS
A. Defined Contribution Plans - General Description
Provident Fund
The Company makes contribution towards employees'' provident fund . Under the schemes, the Company is required to contribute a
specified percentage of payroll cost, as specified in the rules of the schemes to these defined contribution schemes.
1) Fair valuation of trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current
financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
2) Fair value of borrowings from banks, are estimated by discounting future cash flows using rates currently available for debt on
similar terms and remaining maturities.
3) For Security Deposits received, the valuation model considers present value of expected payments discounted using an appropriate
discounting rate.
4) Fair value of security deposits given approximates the carrying value and hence, the valuation technique and inputs have not been
given.
Fair value hierarchy
All financial instruments for which fair value is measured in the financial statements are categorised within the fair value hierarchy,
described as follows:-
Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted (unadjusted) prices in active markets
for identical assets or liabilities
Level 2: This level of hierarchy includes financial assets that are measured using inputs, other than quoted prices included within level
1, that are observable for such items, directly or indirectly.
Level 3: This level of hierarchy includes items measured using a valuation model based on assumptions that are neither supported by
prices from observable current market transactions in the same instruments nor based on available market data.
* Management has assessed that trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and
other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these
instruments.
36. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Company''s principal financial liabilities comprise of borrowings from banks, trade payables and other payables. The main purpose
of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s
principal financial assets include trade and other receivables, other bank balances and cash and cash equivalent that derive directly
from its operations.
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 is responsible to ensure that Company''s financial risk activities which 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.
In the event of crisis caused due to external factors such as caused by recent pandemic "COVID-19â, the management assesses the
recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations
through internal and external source of funds.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price.
Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
The sensitivity analysis in the following sections relate to the position as at March 31, 2025 and March 31, 2024.
(i) 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 Company''s exposure to changes in market interest rates primarily arises from its floating rate debt obligations,
including Cash Credit facilities. For floating rate borrowings, a sensitivity analysis is performed assuming a 0.5% change in the interest
rate on the average borrowings during the year. During the current year, the Company''s borrowings comprised of vehicle loans carrying
fixed interest rates, which do not expose it to interest rate risk, and Cash Credit facilities with variable interest rates, which are subject
to such risk.
(iii) Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material
therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved
supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on
quality.
(b) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a
financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an
ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.
Trade receivables
T rade receivables are subject to credit limits, controls and approval processes. Basis the historical experience, the risk of default in case
of trade receivables is low. Provision is made for doubtful receivables on individual basis depending on the customer ageing, customer
category, specific credit circumstances and the historical experience of the Company.
Liquidity risk
The Company monitors its risk of a shortage of funds doing a liquidity planning exercise. The Company''s objective is to maintain a
balance between continuity of funding and flexibility through the use of short term borrowing facilities like export packing credit and
cash credit facility. The Company''s treasury function reviews the liquidity position on an ongoing basis. The Company assessed the
concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of
sources of funding and surplus cash and cash equivalent on the basis of expected cash flow. The table below summarises the maturity
profile of the Companyâs financial liabilities based on contractual undiscounted payment:
37. CAPITAL RISK MANAGEMENT
The Company''s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future
development. Capital includes issued capital and all other equity reserves attributable to equity holders. The primary objective of the
Company''s capital management is to maintain an optimal structure so as to maximize the shareholder''s value. In order to strengthen the
capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.
The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net
debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash
equivalents.
38. SEGMENT INFORMATION
As per Ind AS 108 identification of segment is based on the manner in which the entityâs Chief Operating decision makersâ (CODM) review
the business components regularly to make decisions about allocating resources to segment and in assessing its performance.
The Chief Operating decision maker reviews business performance at an overall Company level as one segment "Polymeric compounds
business".
A. Due to higher short-term borrowings availed during the year to meet working capital requirements.
41. OTHER STATUTORY INFORMATION
1) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding
any Benami property.
2) There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies Act, 2013.
3) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
4) The Company has 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:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
5) The Company has 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 Group shall:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
6) The Company does not have any such transactions which are not recorded in the books of accounts that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant
provisions of the Income Tax Act, 1961).
7) The company does not have any investments through more than two layers of investment companies as per section 2(87) (d) and section
186 of Companies Act, 2013.
8) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
42. Previous year figures have been regrouped / reclassified wherever necessary to correspond with the
current year''s classification / disclosure.
The notes referred to above form an integral part of the financial statements
As per our Report of even date attached For and on behalf of the Board of Directors
For K N Gutgutia & Co.
Chartered Accountants
Firm''s Registration No: 304153E U.S. Bhartia R.P. Goyal
Chairman Whole Time Director
DIN No.00063091 DIN No.00040570
B R Goyal Place: New Delhi Place: Ahmedabad
Partner
Membership No: 012172 Dilipkumar Gajanand Nikhare Manoj Gohil
Company Secretary
M. No.: A45570 Chief Financial Officer
Place: New Delhi Place: Ahmedabad Place: Ahmedabad
Date: 23.05.2025
Mar 31, 2024
(m) Provisions and Contingencies Provisions
Provisions are recognised 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. Provisions are reviewed at each reporting period and are adjusted to reflect the current best estimate.
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 outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognized in financial statements but are disclosed, if any.
(n) Employee benefits
All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences, performance incentives, etc. and are recognized as expenses in the period in which the employee renders the related service and measured accordingly.
Defined Contribution Plan
Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the statement of Profit & Loss of the year when the contributions to the respective funds are due.
Defined Benefit Plan
Retirement benefit in the form of Gratuity is considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.
Actuarial Gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income (OCI) in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
All other expenses related to defined benefit plans are recognized in Statement of Profit and Loss as employee benefits expense.
Other long-term employee benefits
All employee benefits (other than postemployment benefits and termination benefits) which do not fall due wholly within twelve months after the end of the period in which the employees render the related services are determined based on actuarial valuation or discounted present value method carried out at each balance sheet date. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary as at 31st March every year using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognised in the period in which the absences occur.
(o) 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. The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All the financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.
Subsequent measurement
i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized 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 outstanding. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income 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 that are solely payments of principal and interest on principal amount outstanding. Further in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments the subsequent changes in fair value are recognized in other comprehensive income.
iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair value through profit or loss.
Financial liabilities
Financial liabilities include long term and short term loan and borrowings, trade and other payables and other eligible current and non-current liabilities.
All financial liabilities recognized initially at fair value and, in the case of loans and borrowing and other payable, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
i) 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 at fair value through profit or loss are at each reporting date at fair value with all the changes recognized in the Statement of Profit and Loss.
ii) financial liabilities measured at amortised cost
After initial recognition, such financial liabilities are subsequently measured at amortized cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of financial liability. The EIR amortization is included in finance expense in the profit and loss.
De-recognition of financial instruments
The company derecognizes a financial assets when the contractual rights to the cash flows from the financial assets expire or it transfers the financial assets and the transfer qualifies for de-recognition under Ind AS 109. A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
(p) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holder of the Company by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
1.4 Significant accounting judgements, estimates and assumptions
The preparation of the Companyâs financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. 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.
a) Property, plant and equipment
Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II for plant and machinery, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturersâ warranties and maintenance support. External adviser and internal technical team assessed the useful lives, residual value and fair value of property, plant and equipment as on 1st April 2016. Management believes that the assigned useful lives and residual value are reasonable.
b) Income taxes
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.
c) Provisions and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
d) Insurance claims
Insurance claims are recognised when the Company have reasonable certainty of recovery. Subsequently any change in recoverability is provided for.
e) Recoverability of trade receivables
Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required. Factors considered include the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of nonpayment.
f) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
g) 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 DCF 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.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
1.5 Recent pronouncements
The following Indian Accounting Standards have been modified on miscellaneous issues with effect from April
1, 2023. Such changes include clarification/guidance on:
(i) Ind AS 101 - First time adoption of Ind AS - Deferred tax assets and deferred tax liabilities to be recognized for all temporary differences associated with right-of-use assets, lease liabilities, decommissioning / restoration / similar liabilities.
(ii) Ind AS 107 - Financial Instruments: Disclosures - Information about the measurement basis for financial instruments shall be disclosed as part of material accounting policy information.
(iii) Ind AS 1 - Presentation of Financial Statements & Ind AS 34 - Interim Financial Reporting - Material accounting policy information (including focus on how an entity applied the requirements of Ind AS) shall be disclosed instead of significant accounting policies as part of financial statements.
(iv) Ind AS 8 - Accounting policies, changes in accounting estimate and errors - Clarification on what constitutes an accounting estimate provided.
(v) Ind AS 12 - Income Taxes - In case of a transaction which give rise to equal taxable and deductible temporary differences, the initial recognition exemption from deferred tax is no longer applicable and deferred tax liability & deferred tax asset shall be recognized on gross basis for such cases.
None of the above amendments had any material effect on the companyâs financial statements, except for disclosure of Material Accounting Policies instead of Significant Accounting Policies in the Financial Statements.
B. Defined Benefit Plans - General Description
Gratuity (Funded with L.I.C as group gratuity policy):
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed five years of service are entitled to specific benefit. The level of benefit provided depends on the memberâs length of service and salary retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn for each completed year of service or part thereof in excess of six months. The same is payable on termination of service or retirement or death whichever is earlier.
The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans is based on the market yields on Government bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax) are recognised immediately in the Other Comprehensive Income (OCI).
Fair value hierarchy:
All financial instruments for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows:-
Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: This level of hierarchy includes financial assets that are measured using inputs, other than quoted prices included within level 1, that are observable for such items, directly or indirectly.
Level 3: This level of hierarchy includes items measured using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.
* Management has assessed that trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments._
36 Financial risk management objectives and policies:
The Companyâs principal financial liabilities comprise of borrowings from banks, trade payables and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations. The Companyâs principal financial assets include trade and other receivables, other bank balances and cash and cash equivalent that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management is responsible to ensure that Companyâs financial risk activities which are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives.
In the event of crisis caused due to external factors such as caused by recent pandemic âCOVID-19â, the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(a) Market risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price. Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
The sensitivity analysis in the following sections relate to the position as at March 31, 2024 and March 31, 2023.
(i) 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 Companyâs exposure to the risk of changes in market interest rate relates to floating rate debt obligations. For floating rate borrowings, the sensitivity analysis is prepared assuming 0.5% change in the interest rate on average borrowings for the year. The Companyâs borrowing during the current year comprised of vehicle loans which carries fixed rate of interest, which do not expose it to interest rate risk.
The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on quality.
(b) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.
Trade receivables
Trade receivables are subject to credit limits, controls and approval processes. Basis the historical experience, the risk of default in case of trade receivables is low. Provision is made for doubtful receivables on individual basis depending on the customer ageing, customer category, specific credit circumstances and the historical experience of the Company.
The Company monitors its risk of a shortage of funds doing a liquidity planning exercise. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of short term borrowing facilities like export packing credit and cash credit facility. The Companyâs treasury function reviews the liquidity position on an ongoing basis. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and surplus cash and cash equivalent on the basis of expected cash flow. The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payment:
37 Capital Risk Management:
The Companyâs policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital and all other equity reserves attributable to equity holders. The primary objective of the Companyâs capital management is to maintain an optimal structure so as to maximize the shareholderâs value. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.
The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.
41 Other Statutory Information:
a. The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.
b. There are no transactions and / or balance outstanding with companies struck off under section 248 of the Companies Act, 2013.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
d. The Company has 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:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
e. The Company has 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 Group shall:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f. The Company does not have any such transactions which are not recorded in the books of accounts that
have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
g. The company does not have any investments through more than two layers of investment companies as per section 2(87) (d) and section 186 of Companies Act, 2013.
h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
42 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current yearâs classification / disclosure.
The notes referred to above form an integral part of the financial statements
As per our Report of even date attached For and on behalf of the Board
For K N Gutgutia & Co.
Chartered Accountants U.S. Bhartia R.P. Goyal
Firmâs Registration No.: 304153E Chairman Whole Time Director
DIN No.00063091 DIN No.00040570
B R Goyal Place: New Delhi Place: Ahmedabad
Partner
Membership No.: 012172 Dilip Nikhare Manoj Gohil
Company Secretary Chief Financial Officer
Place: New Delhi M. No.: A45570
Date: 29.05.2024 Place: Ahmedabad Place: Ahmedabad
Mar 31, 2023
(m) Provisions and Contingencies Provisions
Provisions are recognised 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. Provisions are reviewed at each reporting period and are adjusted to reflect the current best estimate.
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 outflow of resources will
be required to settle or a reliable estimate of the amount cannot be made. Information on contingent liability is disclosed in the Notes to the Financial Statements. Contingent assets are not recognized in financial statements but are disclosed, if any.
(n) Employee benefits
All employee benefits payable wholly within twelve months of rendering the services are classified as short term employee benefits, which include benefits like salaries, wages, short term compensated absences, performance incentives, etc. and are recognized as expenses in the period in which the employee renders the related service and measured accordingly.
Defined Contribution Plan
Employee benefits in the form of Provident Fund (with Government Authorities) are considered as defined contribution plan and the contributions are charged to the statement of Profit & Loss of the year when the contributions to the respective funds are due.
Defined Benefit Plan
Retirement benefit in the form of Gratuity is considered as defined benefit obligations and are provided for on the basis of an actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. Actuarial Gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income (OCI) in the period in which they occur. Re-measurements are not reclassified to profit or loss in subsequent periods.
All other expenses related to defined benefit plans are recognized in Statement of Profit and Loss as employee benefits expense.
Other long-term employee benefits
All employee benefits (other than postemployment benefits and termination benefits) which do not fall due wholly within twelve months after the end of the period in which the employees render the related services are determined based on actuarial valuation or discounted present value method carried out at each balance sheet date. The expected cost of accumulating compensated absences is determined by actuarial valuation performed by an independent actuary as at 31st March every year using projected unit credit method on the additional amount expected to be paid / availed as a result of the unused entitlement that has accumulated at the balance sheet date. Expense on non-accumulating compensated absences is recognised in the period in which the absences occur.
(o) 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. The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All the financial assets and liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss, are added to the fair value on initial recognition.
Subsequent measurement
i) Financial assets carried at amortized cost
A financial asset is subsequently measured at amortized 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 outstanding. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss.
ii) Financial assets at fair value through other comprehensive income
A financial asset is subsequently measured at fair value through other comprehensive income 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 that are solely payments of principal and interest on principal amount outstanding. Further in cases where the Company has made an irrevocable election based on its business model, for its investments which are classified as equity instruments the subsequent changes in fair value are recognized in other comprehensive income.
iii) Financial assets at fair value through profit or loss
A financial asset which is not classified in any of the above categories are subsequently fair value through profit or loss.
Financial liabilities
Financial liabilities include long term and short term loan and borrowings, trade and other payables and other eligible current and non-current liabilities.
All financial liabilities recognized initially at fair value and, in the case of loans and borrowing and other payable, net of directly attributable transaction costs. After initial recognition, financial liabilities are classified under one of the following two categories:
i) 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 at fair value through profit or loss are at each reporting date at fair value with all the changes recognized in the Statement of Profit and Loss.
ii) financial liabilities measured at amortised cost After initial recognition, such financial liabilities are subsequently measured at amortized cost by applying the Effective Interest Rate (EIR) method to the gross carrying amount of financial liability. The EIR amortization is included in finance expense in the profit and loss.
De-recognition of financial instruments
The company derecognizes a financial assets when the contractual rights to the cash flows from the financial assets expire or it transfers the financial assets and the transfer qualifies for de-recognition under Ind AS 109. A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires.
(p) Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss attributable to equity holder of the Company by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the year is adjusted for events such as bonus issue.
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
1.4 Significant accounting judgements, estimates and assumptions
The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. 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.
a) Property, plant and equipment
Useful lives of property plant and equipment are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II for plant and machinery, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers'' warranties and maintenance support. External adviser and internal technical team assessed the useful lives, residual value and fair value of property, plant and equipment as on 1st April 2016. Management believes that the assigned useful lives and residual value are reasonable.
b) Income taxes
Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.
c) Provisions and Contingencies
Provisions and liabilities are recognised in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of recognition and quantification of the liability requires the application of judgement to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regularly and revised to take account of changing facts and circumstances.
d) Insurance claims
Insurance claims are recognised when the Company have reasonable certainty of recovery. Subsequently any change in recoverability is provided for.
e) Recoverability of trade receivables Judgements are required in assessing the recoverability of overdue trade receivables and determining whether a provision against those receivables is required.
Factors considered include the amount and timing of anticipated future payments and any possible actions that can be taken to mitigate the risk of non-payment.
f) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
g) 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 DCF 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.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
1.5 Recent pronouncements
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time
to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:
Ind AS 1-Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023.The Company has evaluated the amendment and the impact of the amendments is insignificant in the standalone financial statements.
Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ''accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on standalone financial statements.
Ind AS 12- Income Taxes - This amendment has narrowed the scope of the initial recognition exemptions so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on standalone financial statements.
30 Earnings per share (EPS)
a) Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.
Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.
32 Related party disclosures
In accordance with the requirements of IND AS -24 ''Related Party Disclosures'', names of the related parties, related party relationship, transactions and outstanding balances where control exists and with whom transactions have taken place during the period are:
(i) Names of related parties (and related party relationship) with whom transactions have taken place during the period:
(a) Entities with significant influence over the Company
Kashipur Holdings Ltd India Glycols Limited
(b) Key management personnel and their relatives
Shri U S Bhartia
Shri R P Goyal (Executive Director)
Shri Keerthinarayan Hemmige Shri Krishna Murari Lal Smt. Pragya Bhartia Barwale Ms. Jyoti Shastri
Shri Manojkumar Amratlal Gohil (Chief Financial Officer)
Shri Ankit Vageriya (Company Secretary)
(c) Trust
Polylink Polymers (India) Ltd, Employee Group Gratuity Scheme
(d) Other related parties as per Companies Act, 2013
Clariant IGL Specialty Chemicals Private Limited
B. Defined Benefit Plans - General Description
Gratuity (Funded with L.I.C as group gratuity policy):
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed five years of service are entitled to specific benefit. The level of benefit provided depends on the member''s length of service and salary retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn for each completed year of service or part thereof in excess of six months. The same is payable on termination of service or retirement or death whichever is earlier.
The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans is based on the market yields on Government bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax) are recognised immediately in the Other Comprehensive Income (OCI).
Fair value hierarchy
All financial instruments for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows:-
Level 1: This level of hierarchy includes financial assets that are measured by reference to quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: This level of hierarchy includes financial assets that are measured using inputs, other than quoted prices included within level 1, that are observable for such items, directly or indirectly.
Level 3: This level of hierarchy includes items measured using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.
* Management has assessed that trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
36 Financial risk management objectives and policies
The Company''s principal financial liabilities comprise of borrowings from banks, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include trade and other receivables, other bank balances and cash and cash equivalent that derive directly from its operations.
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 is responsible to ensure that Company''s financial risk activities which 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.
In the event of crisis caused due to external factors such as caused by recent pandemic "COVID-19", the management assesses the recoverability of its assets, maturity of its liabilities to factor it in cash flow forecast to ensure there is enough liquidity in these situations through internal and external source of funds.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
(a) Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price. Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
The sensitivity analysis in the following sections relate to the position as at March 31,2023 and March 31,2022.
(i) 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 Company''s exposure to the risk of changes in market interest rate relates to floating rate debt obligations. For floating rate borrowings, the sensitivity analysis is prepared assuming 0.5% change in the interest rate on average borrowings for the year.:
(iii) Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on quality.
(b) Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.
37 Capital Risk Management
The Company''s policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital and all other equity reserves attributable to equity holders. The primary objective of the Company''s capital management is to maintain an optimal structure so as to maximize the shareholder''s value. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.
The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings less cash and cash equivalents.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.
d. The Company has 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:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
e. The Company has 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 Group shall:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
f. The Company does not any transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).
g. The company does not have any investments through more than two layers of investment companies as per section 2(87) (d) and section 186 of Companies Act, 2013.
h. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
42 Previous year figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.
The notes referred to above form an integral part of the financial statements
AS PER OUR REPORT OF EVEN DATE ATTACHED For and on behalf of the Board
For K N Gutgutia & Co. U.S. Bhartia R.P. Goyal
Chartered Accountants Chairman Whole Time Director
Firm''s Registration No: 304153E DIN No.00063091 DIN No.00040570
Place: New Delhi Place: Ahmedabad
B R Goyal Ankit Vageriya Manoj Gohil
Partner Company Secretary Chief Financial Officer
Membership No: 012172 M.No.A27893
Place: New Delhi Place: Ahmedabad Place: Ahmedabad
Date: 30.05.2023
Mar 31, 2018
1.1 Corporate information
Polylink Polymers (India) Limited (the Company) is a Public Limited Company domiciled in India, incorporated under the provisions of Companies Act, 1956. Itâs shares are listed on Bombay Stock Exchange Limited. The company is leading manufacturer of various compounds for power cable, telephone cable and engineering plastic.
These Financial Statements were authorised for issue in accordance with a resolution of the Board of Directors of the Company in their meeting held on May 16, 2018.
1.2 Basis of preparation
These are the Companyâs first financial statements as at and for the year ended 31 March 2018 that has been prepared in accordance with the Indian Accounting Standard (âInd ASâ) notified under Section 133 of the Companies Act, 2013 read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016 as amended upto date, read with Ind AS based Schedule III, under the Companies Act, 2013.
For all periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). Refer to note 41 for information on First time adoption Ind AS.
The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS Balance Sheet at April 1, 2016 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101, âFirst time adoption of Indian Accounting Standardsâ. The transition was carried out from accounting principles generally accepted in India (ââIndian GAAPââ) which is considered as the previous GAAP, as defined in IND AS 101. The reconciliation of effects of the transition from Indian GAAP to IND AS is disclosed in Note no. 42 to these financial statements.
The Companyâs financial statements provide comparative information in respect to the previous year. In addition, the company presents Balance Sheet as at the beginning of the previous year, which is the transition date to IND AS.
The significant accounting policies used in preparing the financial statements are set out in Note no. 1.3 of the Notes to the Financial Statements.
The preparation of the financial statements requires management to make judgments, estimates and assumptions. Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision effects only that period or in the period of the revision and future periods if the revision affects both current and future years (refer Note no. 1.4 on significant accounting estimates, assumptions and judgments.)
IND AS 101 First-time adoption of Indian Accounting Standards allows first time adopters certain exemptions and exceptions from the retrospective application of certain requirements under IND AS, effective for April 1, 2016 opening balance sheet, as explained below :
Following exemptions availed from other IND AS as per Appendix D of IND AS 101 Deemed cost of Property, Plant and Equipment:
The Company has elected to measure items of Property, plant and equipment at the date of transition to Ind AS at their fair value. Company has used the fair values of assets, which is considered as deemed cost on transition. The impact on fair valuation of Property, plant and equipment on transition from previous GAAP is Rs. 1058.17 lakhs and accordingly impact (net of deferred tax)has been given in âOther equityâ.
Estimates:
The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Previous GAAP (after adjustments to reflect any differences in accounting policies)
The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.
Ind AS 101 treats the information received after the date of transition to Ind ASs as non-adjusting events. The entity shall not reflect that new information in its opening Ind AS Balance Sheet (unless the estimates need adjustment for any differences in accounting policies or there is objective evidence that the estimates were in error).
1.3 Significant accounting judgements, estimates and assumptions
For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders of the Company and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
The preparation of the Companyâs financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. 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.
a) Property, plant and equipment
External adviser and internal technical team assessed the useful lives, residual value and fair value of property, plant and equipment as on 1st April 2016. Management believes that the assigned useful lives and residual value are reasonable.
On transition to IND AS, the Company has adopted optional exemption under IND AS 101 for fair valuation of property, plant and equipment, impact of fair valuation is provided in Note no 42 subsequent to fair valuation depreciation has been charged on fair valued amount less estimated salvage value.
b) Income taxes
Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities based on probability that taxable profit will be available against which the deductible temporary differences can be utilized. The Company reviews at each balance sheet date the carrying amount of deferred tax assets and liabilities. 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 judgmentâs 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) Insurance claims
Insurance claims are recognised when the Company have reasonable certainty of recovery. Subsequently any change in recoverability is provided for.
e) Allowance for uncollectible trade receivables
Trade receivables generally do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not to be collectible.
f) Impairment of financial assets
The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Companyâs past history, existing market conditions as well as forward looking estimates at the end of each reporting period.
g) 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 DCF 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.
Changes in assumptions about these factors could affect the reported fair value of financial instruments.
1.4 Standards issued but not yet effective till March 31,2018
The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:
a) Ind AS 115 Revenue from Contracts with Customers
Ind AS 115 was issued in February 2015. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to the customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.
This standard will come into force from accounting period commencing on or after 1st April, 2018. The Company will adopt the new standard on the required effective date. The Company is in the process of making an assessment of the impact of Ind - AS 115 upon initial application, which is subject to changes arising from a more detailed ongoing analysis.
b. Terms/ rights attached to issued equity shares:
i) The Company has only one class of shares referred to as equity shares having par value of Rs 5/- each. The holder of equity shares is entitled to one vote per share.
ii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.
iii) Shares in respect of each class in the company held by its holding company rights ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate : NIL
iv) Shares reserved for issue under options and contracts/commitments for the sale including the terms and amounts : NIL
v) There are no bonus issue or buy back of equity shares during the period of five years immediately preceding the reporting date.
Notes:-
a) Cash Credit/ Export Packing Credit from Axis Bank Ltd is secured by hypothecation of entire current assets (by way of first charge) including companyâs stock (present & future ) of raw materials,semi finished and finished goods, consumable stores and book debts and also exclusive collateral charge on companyâs assets located at Block No.229-230, Village-Valthera, Dholka District-Ahmedabad, 387810 admeasuring 38546 sq.mtrs.together with all buildings and structures there on and all plant and machinery.
2.Earnings per share (EPS)
a) Basic and diluted EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.
b) The following reflects the income and share capital data used in the basic and diluted EPS computations:
c) There have been no transactions involving equity shares or potential equity shares between the reporting date and the date of authorisation of these financial statements.
3.Related party disclosures
In accordance with the requirements of IND AS -24 âRelated Party Disclosuresâ, names of the related parties, related party relationship, transactions and outstanding balances where control exsists and with whom transactions have taken place during the period are:
(i) Names of related parties and related party relationship
(a) Associates
Kashipur Holdings Ltd India Glycols Limited
(b) Key management personnel and their relatives Shri R P Goyal (Director)
Shri Manoj Gohil (Chief Financial Officer)
Shri Ankit Vageriya (Company Secretary & Compliance Officer)
(ii) The following table provides the total value of transactions that have been entered into with related parties for the relevant financial period:
4.Employee benefits
A. Defined Contribution Plans - General Description
Provident Fund
The Company makes contribution towards employeesâ provident fund . Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes to these defined contribution schemes.
The Company has contributed the following amounts to:
B. Defined Benefit Plans - General Description
Gratuity (Funded with L.I.C as group gratuity policy):
The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the Act, employees who have completed five years of service are entitled to specific benefit. The level of benefit provided depends on the memberâs length of service and salary retirement age. The employee is entitled to a benefit equivalent to 15 days salary last drawn for each completed year of service with part thereof in excess of six months. The same is payable on termination of service or retirement or death whichever is earlier.
The present value of the obligation under such defined benefit plan is determined based on an actuarial valuation as at the reporting date using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligations are measured at the present value of the estimated future cash flows. The discount rate used for determining the present value of the obligation under defined benefit plans is based on the market yields on Government bonds as at the date of actuarial valuation. Actuarial gains and losses (net of tax) are recognised immediately in the Other Comprehensive Income (OCI).
The following tables summarise the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for the respective plans:
The sensitivity analysis presented above has been determined based on the method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period.
Sensitivities due to mortality and withdrawals are not material and hence impact of change not calculated. Sensitivities as to rate of inflation, rate of increase of pensions in payments, rate of increase of pensions before retirement & life expectancy are not applicable being a lump sum benefit on retirement.
The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other tha in a forced or liquidation sale.
The following methods and assumptions were used to estimate the fair values :-
1) Fair valuation of trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
2) Fair value of borrowings from banks, are estimated by discounting future cash flows using rates currently available for debt on similar terms and remaining maturities.
3) Fair value of security deposit received is computed using the present value technique with inputs that include future cash flows and discount rates that reflect assumptions that market participants would apply in pricing the financial instrument.
4) Fair value of security deposits given approximates the carrying value and hence, the valuation technique and inputs have not been given.
Fair value hierarchy
All financial instruments for which fair value is measured in the financial statements are categorised within the fair value hierarchy, described as follows:-
Level 1: This level of hierarchy includes financial assets that are measured by referene to quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: This level of hierarchy includes financial assets that are measured using inputs, other than quoted prices included within level 1, that are observable for such items, directly or indirectly.
Level 3: This level of hierarchy includes items measured using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instruments nor based on available market data.
* Management has assessed that trade receivables, Cash and cash equivalents, other bank balances, loans & advances, trade payables and other current financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.
5.Financial risk management objectives and policies
The Companyâs principal financial liabilities comprise of borrowings from banks, trade payables and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations. The Companyâs principal financial assets include trade and other receivables, other bank balances and cash and cash equivalent that derive directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs senior management oversees the management of these risks. The Companyâs senior management is responsible to ensure that Companyâs financial risk activities which are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Companyâs policies and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market price. Market risk comprise of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk.
The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017. 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 following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Companyâs profit before tax is affected through the impact on borrowings, as follows:
The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment
(b) Foreign currency risk
The Company is exposed to foreign exchange risk arising from foreign currency transactions primarily with respect to USD. Foreign exchange risk arises from future commercial transactions and recognised asset and liabilities denominated in a currency that is not the Companyâs functional currency. The Company imports raw materials and exports finished goods which exposes it to foreign currency risk. The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Companyâs profit before tax is due to changes in the fair value of monetary assets and liabilities.
Commodity price risk
The Company is affected by the price volatility of certain commodities. Its operating activities require the purchase of raw material therefore, requires a continuous supply of certain raw materials. To mitigate the commodity price risk, the Company has an approved supplier base to get competitive prices for the commodities and to assess the market to manage the cost without any comprise on quality.
Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit evaluations are performed on all customers requiring credit over a certain amount.
Trade receivables
Trade receivables are subject to credit limits, controls and approval processes. Basis the historical experience, the risk of default in case of trade receivable is low. Provision is made for doubtful receivables on individual basis depending on the customer ageing, customer category, specific credit circumstances and the historical experience of the Company.
Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.
The ageing of trade receivables at the reporting date was:
Liquidity risk
The Company monitors its risk of a shortage of funds doing a liquidity planning exercise. The Companyâs objective is to maintain a balance between continuity of funding and flexibility through the use of short term borrowing facilities like export packing credit and cash credit facility. The Companyâs treasury function reviews the liquidity position on an ongoing basis. The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and surplus cash and cash equivalent on the basis of expected cash flow. The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payment :
6.Capital Risk Management
The Companyâs policy is to maintain an adequate capital base so as to maintain creditor and market confidence and to sustain future development. Capital includes issued capital and all other equity reserves attributable to equity holders. The primary objective of the Companyâs capital management is to maintain an optimal structure so as to maximize the shareholderâs value. In order to strengthen the capital base, the company may use appropriate means to enhance or reduce capital, as the case may be.
The Company is not subject to any external imposed capital requirement. The company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents.
No changes were made in the objectives, policies or processes for managing capital during the periods ended March 31, 2017 and March 31, 2016.
7. SEGMENT INFORMATION
As per Ind AS 108 identification of segment is based on the manner in which the entityâs Chief Operating decision makersâ (CODM) review the business components regularly to make decisions about allocating resources to segment and in assessing its performance.
The Chief Operating decision maker reviews business performance at an overall Company level as one segment âPolymeric compounds businessâ
a) Summary of total revenue by Geographical area is as follows :
b) Summary of non- current assets by geographical location is as follows:
All non-current assets of the Company are located in India.
c) Revenue from major customer
The above informationâs regarding micro, small and medium enterprise has been determined to the extent such parties have been identified of information available with the Company and as certified by the management.
8.First-time adoption of Ind AS
These financial statements, for the period ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, 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 (Previous GAAP).âAccordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April 01, 2016, the Companyâs date of transition to Ind AS.
This note explains exemptions availed by the Company in restating its Previous GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017. Exemptions applied:
1. Mandatory exceptions :
a) Estimates
The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Previous GAAP (after adjustments to reflect any differences in accounting policies) âThe estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017.âInd AS 101 treats the information received after the date of transition to Ind ASs as non-adjusting events. The entity shall not reflect that new information in its opening Ind AS Balance Sheet (unless the estimates need adjustment for any differences in accounting policies or there is objective evidence that the estimates were in error).
b) De-recognition of financial assets:
The Company has applied the de-recognition requirements in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.
c) Classification and measurement of financial assets:
i. Financial Instruments: (Security deposits received and security deposits paid):
Financial assets like security deposits received and security deposits paid, has been classified and measured at amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind ASs. Since, it is impracticable for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset or the financial liability at the date of transition to Ind AS by applying amortised cost method, has been considered as the new gross carrying amount of that financial asset or the financial liability at the date of transition to Ind AS.
d) Impairment of financial assets: (Trade receivables and other financial assets)
At the date of transition to Ind ASs, the Company has determined that there is no increase in credit risk since the initial recognition of a financial instrument.
2 . Exemptions;
Ind AS 101 allows first time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions: a) Deemed cost of Property, Plant and Equipment
The Company has elected to measue items of Property, plant and equipment at the date of transition to Ind AS at their fair value. Company has used the fair values of assets, which is considered as deemed cost on transition. The impact on fair valuation of Property, plant and equipment on transition from previuos GAAP is â 1058.17 lakhs and accordingly impact has been given in âOther equityâ.
9.Principal differences between Ind AS and Previous GAAP
The following reconciliations provide a quantification of the effect of significant differences arising as a result of transition from Previous GAAP to Ind AS in accordance with Ind AS 101:
Equity as at April 1, 2016
Equity as at March 31, 2017
Profit/(Loss) for the year ended March 31, 2017
Balance Sheet as at April 1, 2016
Balance Sheet as at March 31, 2017
Other Equity Reconciliation
Footnotes to the reconciliation of equity as at April 01, 2016 and March 31, 2017 and profit or loss for the year ended March 31, 2017
(a) Property, Plant and Equipment (PPE)- Fair Value as Deemed cost in IND AS
The Company has elected to measue the items of Property, plant and equipment at the date of transition to Ind AS at their fair value which is considered as deemed cost on transition. This has resulted in an increase in the value of PPE by â 1058.17 lakhs with corresponding credit to retained earnings by â 791.59 lakhs (net of deferred tax liability of â 266.58 lakhs).
Above has resulted in additional depreciation charge to Statement of Profit & Loss by â 14.26 lakhs for the year ended 31st March, 2017.
(b) Deferred Tax
The Company has accounted for deferred tax on the various adjustments between previous GAAP and Ind AS at the tax rate at which they are expected to be reversed.
MAT entitlement credit being of the nature of deferred tax, on transition to Ind AS, MAT credit entitlement of â 59.82 lakhs and 97.36 lakhs for April 1, 2016 and March 31, 2017 respectively has been regrouped under deferred tax assets(net) from Current tax assets(net).
(c) Security deposits received
Under the previous GAAP, interest free lease security deposits received (that are refundable in cash on completion of the lease term) are recorded at their transaction value. Under Ind AS, all financial assets/liabilities are required to be recognised at fair value. Accordingly, the company has fair valued these security deposits received under Ind AS. Difference between the fair value and transaction value of the security deposit has been recognised as deferred rental income. Consequent to this change, the amount of security deposits decreased by â 1.02 lakhs as at 31st March, 2017 (1st April, 2016 - Nil). The deferred rental income increased by Rs.0.97 lakhs as at 31st March, 2017 (1st April, 2016 - Nil). The profit for the year and total equity as at 31st March, 2017 increased by Rs.0.04 lakhs due to recognition of the deferred rental income of Rs.0.24 lakhs which is partially off-set by the notional interest expense of Rs.0.20 lakhs recognised on security deposits.
(d) Excise Duty
Under previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31st March, 2017 by â 253.49 lakhs. There is no impact on the total equity and profit.
(e) Revenue, Selling & distribution expenses
Under Ind AS, the Company recognises revenue at the fair value of consideration received or receivable. Any sales incentive, discounts or rebates in any form, including cash discounts given to customers will be considered as selling price reductions and accounted as reduction from revenue. Under previous GAAP, some of these costs were included in âselling and distributionâ expenses.
(f) Remeasurements of post-employment benefit obligations
Under Ind AS, remeasurements i.e. actuarial gains and losses and return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31st March, 2017 decreased by â 4.09 lakhs. There is no impact on the total equity as at 31st March, 2017.
10. Previous Yearâs figures have been regrouped/rearranged/recast whereever considered necessary.
Mar 31, 2015
1. The Company has only one class of shares referred to as equity
shares having par value of Rs 5/- each holder of equity shares is
entitled to one vote per share.
2. Shares in respect of each class in the company held by its
holding company rights ultimate holding company including shares held
by or by subsidiaries or associates of the holding company or the
ultimate holding company in aggregate : NIL
3. Shares reserved for issue under options and contracts/commitments
for the sale of shares/disinvestment, including the terms and amounts :
NIL
4. In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts.
However, no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
5. There is no change in number of share outstanding as at 31st
March, 2015 & 31st March, 2014.
6. Loan from related parties were repayable as per agreement (i.e.
more than 12 months from the date of financial)
7. Loans from other parties were repayable as per agreement (i.e.
more than 12 months from the date of financial)
8. Loan (Cash Credit/ Working Capital) from Axis Bank Ltd is secured
by hypothecation of entire current assets(by way of first charge)
including company's stock (present & future ) of Raw materials,Semi
finished and finished goods,Consumable stores and Book Debts and also
exclusive collateral charge on company's assets located at Block
No.229-230,Village- Valthera,Dholka District-Ahmedabad,38710
admeasuring 38546 sq.mtrs.together with all buildings and structures
there on and all plant and machinery and guaranteed by the personal
guarantee of Mr. U.S. Bhartia, Chairman of the Company.
9. Cash credit/working capital loan from bank is payable on demand.
10. Letter of credit loan from bank is repayable as per the terms of
agreement (within 12 months from the date of financial).
11. Contingent LiabiLites, not provided for in respect of the
following:
As at As at
Year ended Year ended
31st March,2015 31st March,2014
(Rs. In lacs) (Rs. In lacs)
Claims against the company not 6.39 6.39
acknowledged as debt
12. Commitments As At 31st March 2015 - NIL (P.Y. - NIL)
13. Under the Micro, Small and medium Enterprise Development Act,2006
Which came into force on October 2,2006 certain disclosure are required
to be made relating to Micro, Small and Medium Enterprise. Based on the
information available with the company, there are no amounts payable to
micro and small enterprises within the meaning of the Micro, Small and
medium Enterprise Development Act,2006.
14. Unhedged Foreign Exchange Exposure : Debtors Rs.180.57
(Previous year 259.33 lacs).
15. Selling and Distribution expenses include Rs.12.13 Lacs as
Commission/Discount.(Previous year Rs.12.86 Lacs)
16. Excise duty Expenses represents provision on Closing Stocks for
domestic sales.
17. There are certain leasing arrangement for Office premises / House
accomodation.Monthly charges in this respect are charged to P & L
Account.
18. The company has given Office premises & Godown on lease to one of
the associates company. The rental income of Rs.12.00 lacs (P/y - Rs
12.00 lacs) has been recognised in the accounts for the year.
19. DEFERRED TAX:
The institute of Chartered Accountants of India,has made
mandatory,w.e.f.1.4.2001,the Accounting standard- 22(AS-22) in respect
of 'Accounting for Taxation of Income'. On the basis of virtual
certainty of availability of sufficient future taxable income and also
based upon the data available,the company has computed defered tax
liability and assets as at 31.03.2015 as under and recognised the
Deferred Tax Asset in respect of Past Losses and for other items:
20. There is no separate reportable segment as the company is
predominently engaged in only one segment,i.e.'Polymers Compounding'
therefore,Accounting standard-17 to Segment Reporting,issued by the
Institute of Chartered Accountants of India,is not applicabl to it.
i. For Provident fund Defined Contribution Plans
Total amount of Provident fund Expenses recognised in the Profit & Loss
Account is Rs.7.85 lacs,( Previous year Rs.7.71 lacs)
21. Related party disclosure as require by Accounting Standard-18
(AS-18) "Related Parties Disclosure" issued by the Institute of
Chartered Accountants Of India are given below :
Details of Related Parties
Description of Relationship Name of the related Parties
Associates Kashipur Holdings Ltd
India Glycols Ltd
Key Management Personnel Mr.R.P.Goyal
22. Pursuant to The Companies Ac, 2013 ('the Act'), being effective
from 1st April, 2014, the Company has revised depreciation rates on
fixed assets as per the useful life specified in part 'C' of Schedule
II of the Act. A sum of Rs.67.73 Lacs in respect of assets where useful
life became nil at the beginning of the financial year, has been
charged to the statement of profit & loss for the year. However, as a
result of such change, there is no material impact on the depreciation
expenses for the year.
23. Previous period's figures have been regrouped / rearranged
whererver considered necessary to confirm to this year's
classification.
Mar 31, 2014
1. Note:-
1.1 The Company has only one class of shares referred to as equity
shares having par value of Rs 5/- Each holder of equity shares is
entitled to one vote per share.
1.2 Shares in respect of each class in the company held by its holding
company rights ultimate holding company including shares held by or by
subsidiaries or associates of the holding company or the ultimate
holding company in aggregate : NIL
1.3 Shares reserved for issue under options and contracts/commitments
for the sale of shares/disinvestment, including the terms and amounts :
NIL
1.4 In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts.
However, no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
1.6 There is no change in number of share outstanding as at 31st March,
2014 & 31st March, 2013.
2. Note:-
2.1 Finance Lease obligations are secured by hypothecation of specific
assets taken on such lease. The same are repayable as per the terms of
agreement.
2.2 Loan from related parties is repayable as per agreement (i.e. more
than 12 months from the date of financial)
2.3 Loans from other parties is repayable as per agreement (i.e. more
than 12 months from the date of financial)
3. Note:-
3.1 Loan from Axis Bank Ltd is secured by hypothecation of current
assets(by way of first charge) including company''s stock (present &
future ) of Raw materials,Semi finished and finished goods,Consumable
stores and Book Debts and also by way of second charge over all
immovable properties of the company and personally guaranteed by one
Director and also by way of corporate guarantee of an associate
company,Namely Facit Commosales Private Ltd.and further pledge of their
or its share holdings in certain company.
3.2 Cash credit/working capital loan from bank is payable on demand.
3.3 Letter of credit loan from bank is repayable as per the terms of
agreement (within 12 months from the date from financial).
4. Contingent LiabiLites, not provided for in respect of the following:
As at As at
Year ended Year ended
31st March,2014 31st March,2013
(Rs. In lacs) (Rs. In lacs)
Claims against the company not
acknowledged as debt 6.39 6.39
4.1 Commitments As At 31st March 2014 - NIL
4.2 Under the Micro, Small and medium Enterprise Development Act,2006
Which came into force on October 2,2006 certain disclosure are required
to be made relating to Micro, Small and Medium Enterprise. Based on the
information available with the company, there are no amounts payable to
micro and small enterprises within the meaning of the Micro, Small and
medium Enterprise Development Act,2006.
5. Unhedged Foreign Exchange Exposure : Debtors Rs.259.33 (Previous
year 205.01 lacs).
6. Selling and Distribution expenses include Rs.12.86 Lacs as
Commission/Discount.(Previous year Rs.13.20 Lacs)
7. The company identified during 2008-09 and also during the current
financial year 2013-14 certain fixed assets,which were not under use or
were unusable / surplus,the realisable value (estimated by management)
was lower by Rs.13.25 lacs (Rs.19.28 lacs during 2008-09) which was
provided i.e. during the year 2013-14 provision of Rs 6.03 has been
reversed.
8. Excise duty Expenses represents provision on Closing Stocks for
domestic sales.
9. As the net worth of the company fully eroded as per the Audited
Balance sheet of the company as at 31.03.2009,the company has been
referred to BIFR under the SICA provisions. The Rehabilitation Scheme
as prepared by IDBI, as the operating Agency, has been approved by BIFR
on 12th May 2012.
However the company has been discharged from the purview of SICA/BIFR
as per order dated 19th March,2013.
10. Trade payables,Trade receivable and Advances are subject to
confirmations.
11. 1 There are certain leasing arrangement for Office premises /
House accomodation.Monthly charges in this respect are charged to P & L
Account.
12. 2 The company has given Office premises & Godown on lease to one
of the associates company. The rental income of Rs.12.00 lacs (P/y - Rs
17.40 lacs) has been recognised in the accounts for the year.
13. There is no separate reportable segment as the company is
predominently engaged in only one segment,i.e.''Polymers Compounding''
therefore,Accounting standard-17 to Segment Reporting,issued by the
Institute of Chartered Accountants of India,is not applicable to it.
(a) For Provident fund Defined Contribution Plans
Total amount of Provident fund Expenses recognised in the Profit & Loss
Account is Rs.7.71 lacs, (Previous year Rs.8.23 lacs)
14. Previous period''s figures have been regrouped / rearranged
whererver considered necessary to confirm to this year''s classification
in view of the Schedule VI.
Mar 31, 2013
1 Corporate Information
Polylink Polymers (India) Limited (the Company) is a public company
domiciled in India and incorporated under the provisions of Companies
Act 1956. It''s shares are listed on Bombay Stock Exchange Limited. The
Company is leading manufacturer of various compounds for Power cable,
Telephone cable and Engineering Plastics.
2.1. 1 Contingent liabilities, not provided for in respect of the
following:
AS AT YEAR AS AT YEAR
ENDED ENDED
31ST MARCH,2013 31ST MARCH,2012
(Rs. In lacs) (Rs. In lacs)
Claims against the company
not acknowledged as debt 6.39 10.81
2.2. 2 Commitments
As At 31st March 2013 NIL NIL
2.3 Under the Micro, Small and medium Enterprise Development Act,2006
Which came into force on October 2,2006 certain disclosure are required
to be made relating to Micro, Small and Medium Enterprise. Based on the information available with the company, there are no amounts payable to
micro and small enterprises within the meaning of the Micro, Small and
medium Enterprise Development Act,2006.
2.4.1 Foreign exchange variation (Net) dealt with in the profit and
loss account Rs. 10.44 lacs (Credit) (previous year Rs.1.73 lacs (Debit)),details of the same are as under :
2.4.2 Unhedged Foreign Exchange Explosure : Debtors Rs.205.01 lacs.
2.5 Selling and Distribution expenses include Rs.13.20 Lacs as
Commission/Discount. (Previous year Rs.13.05 Lacs)
2.6 The company identified during 2008 - 09 and also during the
current financial year 2012 - 13 certain fixed assets, which were not
under use or were unusable / surplus, the realisable value (estimated
by management)was lower by Rs.19.28 lacs (Rs.16.00 lacs during 2008-09)
wich was provided .
2.7 Write downs and Write offs :During the year the Company reviewed
the recoverability of claims and upon such review following amounts
were written off / written back :
2.8 Excise duty Expenses represents provision on Closing Stocks for
domestic sales.
2.9.1 Interest is payable commencing from 1.1.2010 as past interest
has been deferred by the said SASF. Interest has been provided from
01.01.2011 to 31.03.2013 at the agreed rate in these Accounts and the
same is payable in six equal installments commencing from 15th,April
2013.
2.9.2 As the net worth of the company fully eroded as per the
Audited Balance sheet of the company as at 31.03.2009, the company has
been referred to BIFR under the SICA provisions. The Rehabilitation
Scheme as prepared by IDBI, as the operating Agency, has been approved
by BIFR on 12th May 2011. However the company has been discharged from
the purview of SICA/BIFR as per order dated 19th March,2013.
2.10 Trade payables, Trade receivable and Advances are subject to
confirmations.
2.11.1 There are certain leasing arrangement for Office premises /
House accomodation. Monthly charges in this respect are charged to P & L Account.
2.11.2 The company has given Office premises & Godown on lease to one
of the associates company. The rental income of Rs. 17.40 lacs (P/y -
Rs 11.80 lacs) has been recognised in the accounts for the year.
2.12 DEFERRED TAX:
The institute of Chartered Accountants of India, has made mandatory,
w.e.f.1.4.2001, the Accounting standard-22(AS-22) in respect of
Accounting for Taxation of Income''. On the basis of virtual certainty
of availability of sufficient future taxable income and also based upon
the data available, the company has computed defered tax liability and
assets as at 31.03.2013 as under and recognised the Deferred Tax Asset
in respect of Past Losses and for other items:
2.13 There is no separate reportable segment as the company is
predominently engaged in only one segment,i.e.'' Polymers Compounding'' therefore, Accounting standard-17 to Segment Reporting, issued by the
Institute of Chartered Accountants of India, is not applicabl to it.
2.14 Additional Information pursuant to Note 5 of Part II of the
Revised Schedule VI of the Companies Act 1956 :
2.15 Previous period''s figures have been regrouped / rearranged
whererver considered necessary to confirm to this year'' classification
in view of the Schedule VI.
Mar 31, 2012
1 Corporate Information
Polylink Polymers (India) Limited (the Company) is a public company
domiciled in India and incorporated under the provisions of Companies
Act 1956. It's shares are listed on Bombay Stock Exchange Limited.
The Company is leading manufacturer of various compounds for Power
cable, Telephone cable and Engineering Plastics.
2.1.1 a) Addition to the capital during the Year:
6601000 Equity shares of Rs 5/-allotted and issued pursuant to
conversion of loan into equity to promoters group,
b) Reduction of the capital during the Year:
During the year, in terms of BIFR order, the company has reduced paid
up value of each equity shares from Rs 10/- to Rs 5/- and the resultant
amount has been credited to "Surplus/(Deficit)" vide Note No 2.2.
2.1.2 The Company has only one class of shares referred to as equity
shares having par value of Rs 5/- Each holder of equity shares is
entitled to one vote per share.
2.1.3 Shares in respect of each class in the company held by its
holding company rights ultimate holding company including shares held
by or by subsidiaries or associates of the holding company or the
ultimate holding company in aggregate : NIL
2.1.4 Shares reserved for issue under options and contracts/commitments
for the sale of shares/disinvestment, including the terms and amounts :
NIL
2.1.5 In the event of liquidation of the Company, the holders of equity
shares will be entitled to receive any of the remaining assets of the
Company, after distribution of all preferential amounts.
However, no such preferential amounts exist currently. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
2.1.6 The details of shareholders holding more than 5% shares as at
31st March,2012 is set out below:
Note:-
1 Term loans facilities from IDBI and / or Negotiated Settelment Dues
of Stressed Assets Stabilization Fund (SASF) are secured by way of
charge by deposit of title deeds and mortgage of all immovable
properties of the compay including its movable plants & machinery,
machinery spares , tools and other movable both present and future
(save and except - book debts) subject to the charge created / to be
created by the company in favour of its bankers on the company's stock
and book debts to secure its working capital requirement; and
personally guaranteed by a Director and an Ex-Director of the company .
Also certain promotors / Group companies / Associates belonging to the
promoters have pledged their certain shareholdings. The same is payable
in 12 equal monthly instalments commencing from 15th April 2012 to 15th
March 2013.
2 Finance Lease obligations are secured by hypothecation of specific
assets taken on such lease. The same are repayable as per the terms of
agreement.
3 The deferment of electricity duty from Goverment is repayable in 60
equal monthly instalments commencing from 1st April 2009 to 31st March
2014.
4 Interest on Term loan amounting to Rs 79.96 lacs from IDBI/SASF is
repayable in 6 equal installments commencing from 15th April 2013.
5 Loan from related parties is payable as per BIFR Scheme.
Note:-
1 Working capital facilities from Axis Bank Ltd is secured by
hypothecation of current assets(by way of first charge) including
company's stock (present & future ) of Raw materials,Semi finished and
f'nished goods,Consumable stores and Book Debts and also by way of
second charge over all immovable properties of the company and
personally guaranteed by one Director ,and also by way of corporate
guarantee of an associate company,Namely Facit Commosales Private
Ltd.and further pledge of their or its share holdings in certain
company.
2 Cash credit/working capital loan from bank is payable on demand.
3 Letter of credit loan from bank is repayable as per the terms of
agreement.
4 Loans from other parties are payable on demand.
2.2.1 Contingent liabilites, not provided for in respect of the
following:
As at As at
Year ended Year ended
31st March,2012 31st March,2011
(Rs. In lacs) (Rs. In lacs)
Claims against the company not
acknowledged as debt 10.81 10.81
2.2.2 Commitments As At 31st March 2012----NIL
2.3 Under the Micro, Small and medium Enterprise Development Act,2006
Which came into force on October 2,2006 certain disclosure are required
to be made relating to Micro, Small and Medium Enterprise. The company
is in , the process of obtaining relevant information from its
suppliers about their coverage under the Act. Since the relevent
information is not readily available, no disclosures could be made in
the Accounts.
2.4 1 Unhedged Foreign Exchange Explosure : Debtors Rs.123.52 lacs.
2.5 Selling and Distribution expenses include Rs.13.05 Lacs as
Commission/Discount.(Previous year Rs.13.88 Lacs)
2.6 The company identified during 2008-09 certain fixed assets,which
were not under use or were unusable / surplus,the relisable value
(estimated by management) was lower by Rs. 16.00 lacs which was
provided.There are no further loss as to assets impairment during the
year.
2.7 Write downs and Write offs :During the year the Company reviewed
the recoverability of claims and upon such review following amounts
were written off / written back :
2.8 Excise duty Expenses represents provision on Closing Stocks for
domestic sales.
2.8 1 Stressed Assets Stabilization Fund (SASF),to whom IDBI assigned
its debt recoverable from the company,has gave its approval of
Negotiated Settelment (NS)(Letter dated June 27,2005 vide letter no.BY/
SASF/ P0LPIL/906 and further amended by letter dated July 16,2005 vide
letter No.BY/SASF/POLPIL/1146) at a sum of Rs.15.50 crores in full and
and final settelement of its principal,Interest and over due interest
etc.accrued up to 31.03.2012for which cut off date was determinded as
01.04.2005. The said SASF has rescheduled ,repayment dates vide its
letter no BY/SASF/Polylink/461 dated 28th May 2010.
2.8 2 Interest is payable commencing from 1.1.2010 as past interest
has been deferred by the said SASF.
Interest has been provided from 01-01.2011 to 31.03.2012 at the agreed
rate in these Accounts and the same is payable in six equal
installments commencing from 15th,April 2013.
2.8 3 As the net worth of the company fully eroded as per the Audited
Balance sheet of the company as at 31.03.2009,the company has been
referred to BIFR under the SICA provisions. The Rehabilitation Scheme
as prepared by IDBI, as the operating Agency, has been approved by BIFR
on 12th May 2012.
2.9 Trade payables,Trade receivable and Advances are subject to
confirmations.
2.10 1 There are certain leasing arrangement for Office premises /
House accomodation.Monthly charges in this respect are charged to P & L
Account.
2.10 2 The company has given Office premises & Godown on lease to one
of the associates company. The rental income of Rs. 11.80 lacs (P/y -
Rs 7.80 lacs) has been recognised in the accounts for the year.
2.11 DEFERRED TAX:
The institute of Chartered Accountants of India,has made
mandatory,w.e.f.l.4.2001,the Accounting standard- 22(AS-22) in respect
of 'Accounting for Taxation of Income'. On the basis of virtual
certainty of availability of sufficient future taxable income and also
based upon the data available,the company has computed defered tax
liability and assets as at 31.03.2012 as under and recognised the
Deferred Tax Asset in respect of Past Losses and for other items:
2.12 There is no separate reportable segment as the company is
predominently engaged in only one segment,i.e.' Polymers Compounding'
therefore,Accounting standard-17 to Segment Reporting,issued by the
Institute of Chartered Accountants of India,is not applicabl to it.
2.13 Previous period's figures have been regrouped / rearranged
whererver considered necessary to confirm to this year's classification
in view of the Revised Schedule VI.
Mar 31, 2010
A. Contingent liabilites, not provided for in respect of the
following:
AS AT YEAR AS AT YEAR
ENDED ENDED
31ST MARCH,2010 31ST MARCH.2009
(Rs.) (Rs.)
i) Claims against the company not
acknowledged as debt 1,080,850 1,080,850
ii) Bills discount with Axis
Bank Ltd 0 890,695
B Under the Micro, Small and medium Enterprise Development Act,2006
Which came into force on October 2,2006certain disclosure are required
to be made relating to Micro, Small and Medium Enterprise. The company
is in the process of obtaining relevant information from its suppliers
about their coverage under the Act. Since the relevent information is
not readily available, no disclosures could be made in the Accounts
C. i) Selling and Distribution expenses include Rs. 13.16 Lacs as
Commission/Discount.(Previous year Rs.20.20 Lacs)
ii) The company identified during 2008-09 certain fixed assets.which
were not under use or were unusable / surplus, the relisable value
(estimated by management) was lower by Rs. 15,99,586/- which was
provided.There are no further loss as to assets impairment during the
year.
v) Exciseduty Expenses represents provision on Closing Stocks.
D. i) Stressed Assets Stabilization Fund (SASF).to whom IDBI assigned
its debt recoverable from the company.has gave its approval of
Negotiated Settelment (NS)(Letter dated June 27,2005 vide letter no.BY/
SASF/POLPIL/906 and further amended by letter dated July 16,2005 vide
letter No.BY/SASF/ POLPIL/1146) at a sum of Rs.15.50 crores in full and
and final settelement of its principal,Interest and over due interest
etc.accrued up to 31,03.2005,for which cut off date was determinded as
01.04.2005 ;against the total outstading of Rs.27,72,66,619/- and
accordingly a sum of Rs. 12,22,66,619/-was written back as Excess
Provision (As Exceptional Income) in the year 2005-06. The said SASF
has rescheduled ,from time to time ,repayment dates.however up to
31.03.2010,the total amount of dafaults on account of repayment is
Rs.Nil (Previous year Rs. 110.00 lacs).The company is contigently
liable for past waivers in case of dafaults.
ii) Interest is payable commencing from 1.1.2010 as past interest has
been deffered by the said SASF.Interest has been provided from
01.01.2010 to 31.03.2010 at the agreed rate.
iii) As the net worth of the company has been fully eroded as per the
Audited Balance sheet of the company as at 31.03.2009, the company has
been refferedto BIFR under theSICA provisions.The rehabilitation scheme
is under preperation by IDBI,being the Operating Agency appointed by
the BIFR.
E. Though Companys entire net worth has been eroded ,it has prepared
its accounts on a Going Concern Basis as the management is hopeful
that company can be revived in view of the Negotiated Settlement
finalised with the Stressed Assets Stabilization Fund (SASF) to whom
the IDBI has assigned its debt recoverable from the company and with
the continued support of its promoters / promoter group companies as
well as the reference to BIFR made by the Company, and the Rehabilation
scheme being framed by IDBI
F. Debtors .Creditors and Advances are subject to confirmations.
G. a) There are certain leasing arrangement for Office premises / House
accomodation.Monthly charges in this respect are charged to P & L
Account.
b) The company has given Office premises on lease to one of the
associates company. The rental income of Rs.5.40 lacs has been
recognised in the accounts for the year.
H DEFERRED TAXATION :
The institute of Chartered Accountants of lndia,has made mandatory,
w.e.f.1.4.2001,the Accounting standard-22(AS-22) in respect of
Accounting for Taxation of Income Accordingly.the company has
computed deferred tax liability and assets as at 30.03.2010 and also
based upon the data available ,it is to creat deferred tax assets.
However ,no such assets has been recognised keeping in view of
preadunce and also as the company is not virtually certain supported by
convincing evidence that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
I There is no separate reportable segment as the company is
predominently engaged in only one segmentj.e.,Polymers Compounding
therefore.Accounting standard-17 to Segment Reporting,issued by the
Institute of Chartered Accountants of India.is not applicabl to it.
(b) For Provident fund Defined Contribution Plans Total amount of
Provident fund Expenses recognised in the Profit & Loss Account is Rs.
6.27 lacs,( Previous year Rs.8.24 lacs)
J Related party disclosure as require by Accounting Standard-18 (AS-18)
"Related Parties Disclosure" issued by the Institute of Chartered
Accountants Of India are given below :
i) LIST OF RETLATED PARTIES :
A. Associate Companies :
-Kashipur Holdings Ltd
-India Glycols Ltd
-Lund & Blockley Pvt Ltd
B. Key Management Personnel & their relatives
-Mr R.P.Goyal -Director (Finance & Commercial)
-Mrs Neeta Goyal (Wife of shri R.P.Goyal)
C. Enterprise over which key managerial personnel or their relatives
have control: -N2N Impex Pvt. Ltd.
K. Previous periods figures have been regrouped / rearranged
whererver considered necessary to confirm to this years
classification.
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