Notes to Accounts of Polyspin Exports Ltd.

Mar 31, 2025

2.16 Provision, Contingent Liabilities and Contingent
Assets

Provisions involving substantial degree of estimation in
measurement are recognized when there is a present
obligation as a result of past events and it is probable that
there will be an outflow of resources, embodying economic
benefits in respect of which a reliable estimate can be made.
Contingent Liability is a possible obligation that may arise
from past events and its existence will be confirmed only by
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the Company or it
is not probable that an outflow of resources embodying
economic benefits will be required to settle the obligation
and the same are not recognized but disclosed in the
financial statements.

Insurance Claims are accounted on the basis of claims
admitted or expected to be admitted and to the extent that the
amount recoverable can be measured reliably and it is
reasonable to expect ultimate collection. Contingent Assets
are not recognized.

2.17 Taxes on Income

Income Tax expenses comprises of current tax and deferred
tax. It is recognized in the statement of Profit and Loss,
except to the extent that it relates to items recognized directly in
Equity or Other Comprehensive Income. In such cases, the
tax is also recognized directly in Equity or in Other
Comprehensive Income.

Current Tax

Current Tax is the amount of tax payable on the taxable
income for the year, determined in accordance with the
provisions of the Income Tax Act, 1961.

Deferred Tax

Deferred Tax is recognized on temporary differences
between the carrying amounts of assets and liabilities in the
balance sheet and their corresponding tax bases. Deferred tax
liabilities are generally recognized for all taxable temporary
differences.

Deferred Tax Assets are generally recognized for all deductible
temporary differences and unused tax losses being
carried forward, to the extent that it is probable that taxable

profits will be available in future against which those
deductible temporary differences and tax losses can be
utilized. The carrying amount of deferred tax assets is
reviewed at the end of each reporting period and reduced to
the extent that it is no longer probable that sufficient taxable
profit will be available to allow all or part of the assets to be
recovered.

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

Minimum Alternate Tax (MAT)

MAT Credit is recognized as an asset only when and to the
extent there is convincing evidence that the Company will pay
normal income tax during the specified period (i.e.) the period
for which MAT credit is allowed to be carried forward, in the
year in which the MAT credit becomes eligible to be recognized
as an asset in accordance with the recommendations
contained in the Guidance Note issued by the Institute of
Chartered Accountants of India, the said asset is created by
way of a credit to the statement of Profit and Loss and shown as
MAT credit entitlement. The Company reviews the same at
each Balance Sheet date and writes down the carrying amount
of MAT credit entitlement to the extent there is no longer
convincing evidence to the effect that the Company will pay
normal income tax during the specified period.

2.18. Non-current assets (or disposal groups) classified
as held for sale:

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

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

2.19. Earning Per Share

Basic earnings per equity share is computed by dividing the
net profit attributable to the equity holders of the Company by
the weighted average number of equity shares outstanding
during the period. Diluted earnings per equity share is
computed by dividing the net profit attributable to the
equity holders of the Company by the weighted average
number of equity shares considered for deriving basic
earnings per equity share and also the weighted average
number of equity shares that could have been issued upon
conversion of all dilutive potential equity shares. Dilutive
potential equity shares are deemed converted as of the

beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for
each period presented.

The Weighted average number of equity shares outstanding
during the period is adjusted for events of bonus issue, buy
back of shares, bonus element in a rights issue to existing
shareholders, share split and reverse share split
(consolidation of shares).

2.20. Significant Estimates and Judgements

The preparation of the 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. Actual
results could vary from these estimates. The estimates and
underlying assumptions are reviewed on an on-going 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 or future
periods, if the revision affects both current and future
years.

Accordingly, the management has applied the following
estimates / assumptions / judgements in preparation and
presentation of financial statements.

Property, Plant and Equipment, Intangible Assets:-

The residual values estimated useful life of PPEs & Intangible
Assets are assessed by technical team duly reviewed by the
management at each reporting date. Wherever the
management believes that the assigned useful life and
residual value are appropriate, such recommendations are
accepted and adopted for computation of depreciation /
amortization.

Current Taxes:-

Calculations of Income Taxes for the current period are
done based on applicable tax laws and managements
judgement by evaluating positions taken in tax returns and
interpretation of relevant provisions of law.

Deferred Tax Rate (Including MAT Credit Entitlement)

Significant Management judgement is exercised by
reviewing the deferred tax assets at each reporting date to
determine the amount of deferred tax assets that can be
retained /recognized, based upon the likely with future tax
planning strategies.

Contingent Liabilities:-

Management''s judgement is exercised for estimating the
possible outflow of resources, if any, in respect of
Contingencies / Claims / Litigation against the Company as
it is not possible to predict the outcome of pending matters
with accuracy.

Impairment of Trade Receivables:-

The impairment for financial assets are done based
on assumption about risk of default and expected loss rates.
The assumptions, selection of inputs for calculation of
impairment are based on management judgement considering
the past history, market condition and forward booking
estimates at the end of each reporting date.

Impairment of Non-Financial Asset (PPE / Intangible
Assets)

The impairment of Non-Financial Assets is determined based
on estimate of recoverable amount of such assets. The
assumptions used in computing the recoverable amount
are based on management judgement considering the timing

of future cash flow, discount rates and risks specific to the
asset.

Defined Benefit Plan and Other Long Term Benefits:-

The cost of the defined benefit plan and other long term
benefits and the present value of such obligation are
determined by the independent actuarial values. Management
believes that the assumptions used by the actuary in
determination of discount rate, future salary increases,
mortality rates and attrition rates are reasonable. Due to the
complexities involved in the valuation and its long term nature,
this obligation is highly sensitive to changes in these
assumptions.

29. Financial Risk Management

The Company''s principle financial liabilities comprise of
borrowings, trade and other payables. The main purpose of
these financial liabilities is to manage finances for the
Company''s operations. The Company''s principle financlial
assets include loans and advances, trade receivables and
cash and bank balances that arise directly from its operations.

The Company also enters into derivative transaction to hedge
foreign currency and not for speculative purposes. The
Company is exposed to Market Risk, Credit Risk and Liquidity
Risk and the Company''s Senior Management oversees the
management of these risks.

29.1. Market Risk

Market Risk is the risk that the fair value of future cash flows
of a financial asset will fluctuate because of changes in market
prices. The Company''s activities expose it to a variety of
financial risks, including the effect of changes in foreign
currency exchange rates and interest rates.

29.1. (a). Currency Risk

Foreign Currency risk is the risk that fair value of future cash
flow of an exposure will fluctuate because of changes in
foreign exchange rates.

The Company''s exposure in USD and other foreign currency
denominated transactions in connection with export of finished
goods, besides import of raw materials, capital goods and
spares, etc., purchased in foreign currency, gives rise to
exchange rate fluctuation risk. The Company has following
policies to mitigate this risk:

The Company has entered into foreign currency forward
contracts both for export and import, after taking into
consideration of the anticipated foreign exchange inflows /
outflows, timing of cash flows, tenure of the forward contract
and prevailing foreign exchange market conditions.

Risk sensitivity on Foreign Currency Fluctuations:-

The Company evaluates the impact of foreign exchange rate
fluctuations by assessing its exposure to exchange rate risks.
It hedges a part of these risks by using derivative financial
instruments in accordance with its risk management policies.

The foreign exchange rate sensitivity is calculated for each
currency by aggregation of the net foreign exchange rate
exposure of a currency and a simultaneous parallel foreign
exchange rates shift in the foreign exchange rates by 3%.

The following analysis is based on the gross exposure as of the
relevant balance sheet date, which could affect the income
statement.

The following table sets forth the information relating to foreign
currency exposure as at 31.03.2025 and 31.03.2024

29.1.(b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash
flows of an exposure will fluctuate because of changes in
market interest rates. The Company''s exposure to the risk of
changes in market in interest rates related primarily to the
Company''s both long term and short term debt obligation with
floating interest rates. Any changes in the interest rates
environment may impact future cost of borrowings.

29.2. Credit Risk

Credit Risk is that risk that counter party will not meet its
obligation under a financial instrument or customer contract,
leading to financial loss. The Company is exposed to credit
risk from its operating activities, primarily trade receivables
and from its financial activities, including deposits with banks
and other financial instruments.

a) Trade Receivables

The Company extends credit to customers in the normal
course of business. Outstanding customer receivables are
regularly monitored. The Company has also taken advances
from its customers, which mitigate the credit risks to an
extent. An impairment analysis is performed at each reporting
date on an individual basis for major customers.

economic conditions and the requirements is met through
capital, internal accruals, long term borrowings and short term
borrowings.

In order to achieve this overall objective, the Company''s
capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest
bearing loans and borrowings that define capital structure
requirements.

29.3. Liquidity Risk

Liquidity Risk is the risk that the Company may not be able to
meet its present and future cash and collateral obligations
without incurring unacceptable losses. The Company''s
objective is to maintain a balance between continuity or
funding and flexibility through the use of Packing Credit
and Working Capital Limits. The Company ensures it has
sufficient cash to meet its operational needs while
maintaining sufficient margin on its undrawn borrowing
facilities at all times.

The Company has access to the following undrawn borrowing
facilities at the end of the reporting period:-

29.4. Capital Management:-

For the purpose of the Company''s Capital management,
capital includes issued equity capital and all other equity
reserves attributable to the equity Shareholders of the
Company. The primary objective of the Company''s capital
management is to safeguard continuity, maintain healthy
capital ratios in order to support its business and maximize
Shareholders value. The Company manages its capital
structure and makes adjustments in light of changes in

During the year ended 31^st March, 2024 and 31^st March, 2025,
there are no transfer between Level1 and Level 2 fair value
measurements and no transfer into and out of Level 3 fair value
measurements and there is no transaction / balance under
Level 3.

Fair Valuation Technique:

The Company maintains policies and procedures to value
financial assets or financial liabilities using the best and most
relevant data available. The fair values of the financial assets
and liabilities are included at the amount that would be
received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the
measurement date. The following methods and assumptions
were used to estimate certain fair values:-

1. Fair value of cash deposits, trade receivables, trade
payables and other current financial assets and
liabilities approximate their carrying amount largely
due to the short term maturities of these instruments.

2. The fair value of derivatives are based on marked to
market valuation statements received from banks with
whom the Company has entered into the relevant
contracts.

Fair value hierarchy:

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

1. Quoted prices / Published NAV (unadjusted) in active
markets for identical assets or liabilities (Level 1).

2. Inputs other than quoted prices included within Level 1
that are observable for the asset or liability (i.e. as
prices) or indirectly (i.e. derived from prices) Level 2. It
includes fair value of the financial instruments that are
not traded in an active market (for example, over the
counter derivatives) and are determined by using
valuation technique. These valuation techniques
maximize the use of observable market data where it is
available and rely as little as possible on the Company''s
specific estimates. If all significant inputs required to
fair value an instrument are observable, then the
instrument is included in Level 2.

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

29.6. The Ministry of Corporate Affairs issued the Companies
(Indian Accounting Standards), (Amendments) Rules
2018, notifying the new standard IND AS 115 on
Revenue from contracts with customers and it is
applicable from 01.04.2018.

- Replaces IND AS 18 Revenue and IND AS 11
Construction contracts

- Establishes a new control based revenue recognition
model

- Provides new and more detailed guidance on specific
topics such as multiple element arrangements,
variables consideration, rights of return, warranties,
principal versus agent consideration, consignment
arrangements, bill and hold arrangements and
licensing, to name a few.

Revenue is recognised at an amount that reflects the
consideration to which on entity expects to be entitled in
exchange for transferring goods at services to a customer.

Adoption of IND AS 115 is not expected to have any impact on
the Companies revenue and profit or loss. The Company
expects the revenue recognition to occur at a point in time
when the materials are delivered to at the customers in case of
FIBC Bags, PP Fabric, PP Yarn, Multifilament Yarn & Cotton
Yarn.

Defined Benefit Plan (Gratuity):

The Company provides gratuity to employees as per the
Payment of Gratuity Act, 1972. Employees who are in
continuous service for a period of 5 years are eligible for
gratuity. The amount of gratuity payable on retirement /
termination is the employees last drawn basic salary per
month computed proportionately for 15 days salary multiplied
for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined
benefit plan, is managed by a trust maintained with Life
Insurance Corporation of India (LIC).

The present value of the obligation is determined based on
actuarial valuation using Projected Units Credit Method,
which recognises each period of service as giving rise to
additional units of employees benefit entitlement and
measures each unit separately to build up the final obligation.

The following table sets out the details of amount recognised in
the financial statements in respect of employee benefit
schemes:

The Proceeds of sale of Machineries were used to liquidate
the Term loans Outstanding.

The Machineries of Book value Rs. 57.22 lakhs were transferred
to FIBC division and the same will be realized in the Next
Financial Year.

The analysis of single Amount disclosed in the Statement of
Profit and loss Account for Discontinued operations is as follows:

33. Details of Discontinued Operations As per IND AS-105

The management, during the Financial Year 2023-24, had
permanently stopped the operations of Textile division due to
the continuous operational losses and market slow down.

The carrying Amount of Assets held for sale as on 31.03.2024
was Rs. 584.82 lakhs.

The company has completed the sale process of Machineries
before the mandated period of 30.09.2024. The details are as
follows.

WDV of the Machineries sold: Rs. 530.54 Lakhs.

Loss on sale of Machineries: Rs. 106.63 lakhs.

As required to be disclosed under the Micro, Small and
Medium Enterprises Development Act, 2006, the Company
has outstanding dues of Rs.254.06 Lakhs as at
31^st March, 2025 to Micro, Small and Medium Enterprises.
This has been determined to the extent such parties have
been identified on the basis of information available with the
Company and provide by such parties.

34.8 Confirmation of balances of Trade Receivables and
Payables:-

The Company requested its debtors and creditors to
confirm their outstanding balances as at
31^st December, 2024 in respect of trade receivables and
trade payables. Most of them have given their
confirmation of balance, except few parties to be
submitted, awaiting for some with clarification.

34.9 Deferred Tax (AS- 22) :

Deferred Tax Liability ( Net) for Rs.214 lakhs as on
31.03.2025. (Previous year ( Net) -Deferred Tax
Assets - Rs.166.09) has been recognized in the current
year''s profit in accordance with the Accounting of
Deferred Tax in pursuance of AS-22 issued by the
institute of Chartered Accountants of India.

34.10 Regrouping of Previous year figures

The previous year''s figures have not been regrouped
during the current year.

36.2 Notes for Significant changes in Ratios from

previous year:

S.No. 3 The significant positive Variation in DSCR is due to
Improved Revenue and profitability.

S.No. 4 The significant positive Variation in Net Profit Ratio is
due to Improved Revenue and profitability.

S.No. 5 The significant positive Variation in the ROE is due
to Improved Revenue and profitability.

S.No.6 The significant positive Variation in the ROCE is due
Improved Revenue and profitability.

S.No.7 The significant reduction in return on investment
due to non-declaration of interim dividend by
Associate Company.

S.No.10.The significant Positive variation in the Trade
Payables Turnover Ratio is due to significant
reduction in the year end import usance purchases
compared to the last year.

35.3. Charges / Satisfaction of charges with ROC.

All the charges are registered with ROC within the
stipulated time.

35.4. The Company does not have any investments through
more than two layers of investments companies as per
section 192 (87) (cd) and section 186 of companies Act,
2013.

35.5. There is no Scheme of Arrangements that has been
approved in terms of sections 230 to 237 of the
Companies Act.

35.6. i. The company has not given any Loans or

Advances in the nature of loans to promoters,
directors, KMPs and their related parties (as
defined under Companies Act, 2013,) either
severally or jointly with any other person.

ii. The title deeds of all the immovable properties
are held in the name of the Company.

iii. The Company has not revalued its Property,
Plant and Equipment (including Right of use
assets) or intangible assets during the year
ended 31^st March, 2025.

iv. No Intangible Assets under development during
the year.

v. Quarterly statements of Current Assets filed with
banks and financial institutions for fund borrowed

from those banks and financial institutions on
the basis of security of current assets are in
agreement with the books of account.

vi. No proceedings have been initiated during the
year or are pending against the Company as at
31st March 2025 for holding any benami
property under the benami Transactions
(Prohibition) Act, 1988 (as amended in 2016)

and rules made there under.

vii. The Company has not been declared willful

defaulter by any bank or financial institution or
government or any government authority.

viii. The company has not advanced / loaned /
invested or received funds (either borrowed
funds or share premium or any other sources or
kind of funds) to any other person(s) or
entity(ies), including foreign entities
(Intermediaries) with the understanding
(whether recorded in writing or otherwise) that
the Intermediary shall directly or indirectly lend or
invest in other persons or entities identified in any
manner whatsoever by or on behalf of the
company (Ultimate Beneficiaries) or provide any
guarantee, security or the like to or on behalf of
the Ultimate Beneficiaries.

35.7. There were no transaction relating to previously
unrecorded income that were surrendered or disclosed
as income in the tax assessments under the income tax
Act,1961 (43 of 1961).

35.8 Dividend

The Board of Directors wish to conserve resources
for future expansion and growth of the Company.
Hence, your Directors have decided not to declare
any dividend for the financial year ended
31^st March, 2025.

35.9. The obligation with respect to Corporate Social
Responsibility is not applicable to the Company for the
financial year 2024 - 2025 since, the company has not
fulfilled any one of criteria as provided in section 135 of
the Companies Act, 2013.

35.10. The Company has not traded or invested in Crypto
currency or Virtual Currency during the financial
year.

35.11. The Central Government has published, the Code on
Social Security, 2020 and Industrial Relations

Code, 2020 ("Codes"), relating to employee benefits
during employment and post-employment benefits
and received presidential assent in September, 2020.
However, the date on which the Code will come into

effect has not been notified. The Company will assess
the impact of the code when it comes into effect and will
record any related impact in the period, the code
becomes effective.

As per our report of even date
For KRISHNAN AND RAMAN

CHARTERED ACCOUNTANTS

R. RAMJI S.V RAVI

Firm''s Registration No. 001515S

Managing Director & CEO Director

V. SRIKRISHNAN DIN: 00109393 DIN: 00121742

Partner

Membership No. 206115
UDIN : 25206115BMIKWC1360

S. SEENIVASA VARATHAN A. EMARAJAN

^Place : ^Rajapalayam Chief Financial Officer Company Secretary

Date : May 29, 2025

---

Mar 31, 2024

General Reserve:

General reserve is created by the Company by appropriating the balance of Retained Earnings. It is a free reserve which can be used for meeting future contingencies, creating working capital for business operations, strengthening the financial position of the company.

Retained earnings:

Retained earning are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. (Refer statement of changes in equity.)

28.1. The Company has fulfilled export obligations (FIBC Bags Division), net foreign exchange earnings and other conditions, as applicable till date, in terms of schemes of Government of India, for 100% EOU.

Note: Mark to market loss of Rs. 4.24 Lakhs on outstanding forward contract as on 31^st March 2024 has been recognized in other comprehensive income as per IND AS 109 on accounting of cash flow hedge.

As per requirements of IND AS 33, the Basic and Diluted earnings per share for all the periods presented have been computed on 1,00,00,000 Equity Shares of Rs. 5/- each.

29. Financial Risk Management

The Company''s principle financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to manage finances for the Company''s operations. The Company''s principle financlial assets include loans and advances, trade receivables and cash and bank balances that arise directly from its operations.

The Company also enters into derivative transaction to hedge foreign currency and not for speculative purposes. The Company is exposed to Market Risk, Credit Risk and Liquidity Risk and the Company''s Senior Management oversees the management of these risks.

29.1. Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial asset will fluctuate because of changes in market prices. The Company''s activities expose it to a variety of financial risks, including the effect of changes in foreign currency exchange rates and interest rates.

29.1. (a). Currency Risk

Foreign Currency risk is the risk that fair value of future cash flow of an exposure will fluctuate because of changes in foreign exchange rates.

The Company''s exposure in USD and other foreign currency denominated transactions in connection with export of finished goods, besides import of raw materials, capital goods and spares, etc., purchased in foreign currency, gives rise to exchange rate fluctuation risk. The Company has following policies to mitigate this risk:

The Company has entered into foreign currency forward contracts both for export and import, after taking into consideration of the anticipated foreign exchange inflows / outflows, timing of cash flows, tenure of the forward contract and prevailing foreign exchange market conditions.

Risk sensitivity on Foreign Currency Fluctuations:-

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.

The foreign exchange rate sensitivity is calculated for each currency by aggregation of the net foreign exchange rate exposure of a currency and a simultaneous parallel foreign exchange rates shift in the foreign exchange rates by 3%.

The following analysis is based on the gross exposure as of the relevant balance sheet date, which could affect the income statement.

29.1.(b) Interest Rate Risk

Interest rate risk is the risk that the fair value of future cash flows of an exposure will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market in interest rates related primarily to the Company''s both long term and short term debt obligation with floating interest rates. Any changes in the interest rates environment may impact future cost of borrowings.

29.2. Credit Risk

Credit Risk is that risk that counter party will not meet its obligation under a financial instrument or customer contract, leading to financial loss. The Company is exposed to credit risk from its operating activities, primarily trade receivables and from its financial activities, including deposits with banks and other financial instruments.

a) Trade Receivables

The Company extends credit to customers in the normal course of business. Outstanding customer receivables are regularly monitored. The Company has also taken advances from its customers, which mitigate the credit risks to an extent. An impairment analysis is performed at each reporting date on an individual basis for major customers.

economic conditions and the requirements is met through capital, internal accruals, long term borrowings and short term borrowings.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest bearing loans and borrowings that define capital structure requirements.

29.3. Liquidity Risk

Liquidity Risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to maintain a balance between continuity or funding and flexibility through the use of Packing Credit and Working Capital Limits. The Company ensures it has sufficient cash to meet its operational needs while maintaining sufficient margin on its undrawn borrowing facilities at all times.

There have been no breaches in the financial covenants of any interest bearing loans / borrowing. The Company has been consistently focusing on reduction in long term borrowings.

29.5. Fair value of Financial Assets and Liabilities:-

Comparison by class of the carrying amounts and fair value of the Company''s financial instruments that are recognized in the financial statements:

29.4. Capital Management:-

For the purpose of the Company''s Capital management, capital includes issued equity capital and all other equity reserves attributable to the equity Shareholders of the Company. The primary objective of the Company''s capital management is to safeguard continuity, maintain healthy capital ratios in order to support its business and maximize Shareholders value. The Company manages its capital structure and makes adjustments in light of changes in

During the year ended 31^st March, 2023 and 31^st March, 2024, there are no transfer between Level1 and Level 2 fair value measurements and no transfer into and out of Level 3 fair value measurements and there is no transaction / balance under Level 3.

Fair Valuation Technique:

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate certain fair values:-

1. Fair value of cash deposits, trade receivables, trade payables and other current financial assets and liabilities approximate their carrying amount largely due to the short term maturities of these instruments.

2. The fair value of derivatives are based on marked to market valuation statements received from banks with whom the Company has entered into the relevant contracts.

Fair value hierarchy:

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

1. Quoted prices / Published NAV (unadjusted) in active markets for identical assets or liabilities (Level 1).

2. Inputs other than quoted prices included within Level 1 that are observable for the asset or liability (i.e. as prices) or indirectly (i.e. derived from prices) Level 2. It includes fair value of the financial instruments that are not traded in an active market (for example, over the counter derivatives) and are determined by using valuation technique. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on the Company''s specific estimates. If all significant inputs required to fair value an instrument are observable, then the instrument is included in Level 2.

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

30. The Ministry of Corporate Affairs issued the Companies

(Indian Accounting Standards), (Amendments) Rules 2018, notifying the new standard IND AS 115 on Revenue from contracts with customers and it is applicable from 01.04.2018.

- Replaces IND AS 18 Revenue and IND AS 11 Construction contracts

- Establishes a new control based revenue recognition model

- Provides new and more detailed guidance on specific topics such as multiple element arrangements, variables consideration, rights of return, warranties, principal versus agent consideration, consignment arrangements, bill and hold arrangements and licensing, to name a few.

Revenue is recognised at an amount that reflects the consideration to which on entity expects to be entitled in exchange for transferring goods at services to a customer.

Adoption of IND AS 115 is not expected to have any impact on the Companies revenue and profit or loss. The Company expects the revenue recognition to occur at a point in time when the materials are delivered to at the customers in case of FIBC Bags, PP Fabric, PP Yarn, Multifilament Yarn & Cotton Yarn.

The company has capitalized Provident Fund for Rs.3.54 Lakhs and Employee State Insurance contribution for Rs.0.64 Laksh relevant to ongoing projects.

Defined Benefit Plan (Gratuity):

The Company provides gratuity to employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement / termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

The Employees Gratuity Fund Scheme, which is a defined benefit plan, is managed by a trust maintained with Life Insurance Corporation of India (LIC).

The present value of the obligation is determined based on actuarial valuation using Projected Units Credit Method, which recognises each period of service as giving rise to additional units of employees benefit entitlement and measures each unit separately to build up the final obligation.

The following table sets out the details of amount recognised in the financial statements in respect of employee benefit schemes:

34. Details of Discontinued Operations As per IND AS-105

The continuous operational losses due to price instability of OE Yarn and country wide apparels and textiles market slowdown has led management to permanently shut down the operations of OE Yarn segment with effect from 16.06.2023. The facilities are currently used for phased expansion of FIBC division.

The Assets and Liabilities of the Discontinued Operations of Textile division have met the definition of “Held for Sale” as per the IND AS-105 and the results of the operations are reported as a separate line Item as required by the standard. The details of Assets and liabilities classified as “Held for Sale” is as follows:

The management is confident of full recovery of current assets which will be utilized to settle the current liabilities. Building value of Rs. 229 Lakhs and other incidental assets of Rs. 28 Lakhs will be utilized for FIBC division. Hence we have not classified such assets as “Held for Sale”.

Since the management is of the view that the realizable value after all the incidental expenses of the Assets classified as “Held for sale” will be more than the Carrying cost, we have not tested the Assets for Impairment as per IND AS 36.

The Results and the Total Assets and Liabilities of the discontinued segment are reported in the Segment Reporting.

The details of Machineries sold during the quarter are as under:

Total WDV of Machineries sold: Rs. 51.26 lakhs.

Sale Consideration Received including GST : Rs.88.61 lakhs.

Out of Total consideration received, the amount of Rs. 13.51 lakhs has been used for Re -paying the Short term credit facilities and the Balance portion Rs. 75.10 lakhs has been used to liquidate Term Loans.

The Management is expecting that the entire sale process will be completed before September 2024.

ii) The Company has challenged the levy of duty of excise and customs aggregating to Rs. 487.72 Lakhs (Previous Year Rs. 487.72 Lakhs) on wrong calculation of SION Norms for the consumption of UV Master Batches (Imported) for production of FIBC Bags meant for export (100% E.O.U) and the same is pending before the appropriate jurisdictional authorities.

As required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006, the Company has outstanding dues of Rs. 307.65 Lakhs as at 31^st March, 2024 to Micro, Small and Medium Enterprises. This has been determined to the extent such parties have been identified on the basis of information available with the Company and provide by such parties.

The management is of the view that the payments were made to MSME suppliers on contractual terms and the impact of interest, if any, that may be payable in accordance with the provisions of the Act, is not expected to be material.

5 The Company has generated power out of Wind Mill installed at NH Road, Ambalavanapuram, Avarikulam Post - 627 133 Tirunelveli District and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 16.87 Lakhs (Previous Year: Rs.16.38 Lakhs) being the credit given by TNEB for the transfer of power to the Grid.

35.6 Our Company''s shares are listed at BSE Limited with stock code of 539354.

35.7 Confirmation of balances of Trade Receivables and Payables:-

The Company requested its debtors and creditors to confirm their outstanding balances as at 31^st December, 2023 in respect of trade receivables and trade payables. Most of them have given their confirmation of balance, except few parties to be submitted, awaiting for some with clarification.

35.8 Deferred Tax (AS- 22) :

The deferred tax liabilities recognized in the earlier years has been reversed to the extent of Rs. 166.09 Lakhs due to the reclassification of Fixed assets valued Rs. 584.82 Lakhs to “ Assets Held for sale “ under current Assets classification . These assets pertain to operations of Textile division which has been discontinued. The depreciation of the Assets has been ceased to comply with the standard (IND AS -105). The carrying Amount of the Assets has been reduced to the extent of above re-classification. The Income Tax Act has not mandated such Re-classification except for the reduction of Actual consideration received for the sale of the Assets from the opening WDV. Hence the above Assets held for Sale has been retained in the Assets block for the purpose of computation of Depreciation as per Sec.32. This has resulted in reversal of deferred Tax liabilities created due to lower tax Bases of Assets in the previous years.

35.9 Regrouping of Previous year figures

Previous year''s figures have been regrouped /reclassified wherever necessary, to conform to current year''s classification. The following regroupings have been done in the current financial statement:-

1A

1. TDS and advance tax credits of Rs. 7.70 Lakhs have been reclassified under Current Tax Assets from Other Current Assets.

2. Gratuity Assets of Rs. 49.05 Lakhs have been reclassified under Other Non-Current Assets (Note No. 6) from Other Current Assets.

3. Derivative Liability of Rs. 159.87 Lakhs has been reclassified under Other Non-Current Liabilities (Note No. 16) from Other Current Liabilities.

4. Intangible Assets of Rs. 1.05 lakhs has been re-classified to Office equipment under Property, Plant and Equipment.

Since the Figures of previous year has been re -classified wherever necessary the Ratios for the previous year has been re-worked.

36.2 Notes for Significant changes in Ratios from previous year:

S.No. 3 The Adverse Variation in DSCR is due to Lower Revenue and profitability.

S.No. 4 The Adverse variation in Net Profit Ratio is due to significant reduction in Revenue from operation.

S.No. 5 The Adverse variation in the ROE is due to huge reduction in margins in comparison to the last financial year.

S.No.6 The Adverse variation in the ROCE is due to huge reduction in margins in comparison to the last financial year.

S.No.7 The significant positive variation in Return on Investments is due to realization of Dividends from Associate Company

36.3. Charges / Satisfaction of charges with ROC.

All the charges are registered with ROC within the stipulated time.

36.4. The Company does not have any investments through more than two layers of investments companies as per section 192 (87) (cd) and section 186 of companies Act, 2013.

36.5. There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237 of the Companies Act.

36.6. i. The company has not given any Loans or

Advances in the nature of loans to promoters, directors, KMPs and their related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person.

ii. The title deeds of all the immovable properties are held in the name of the Company.

iii. The Company has not revalued its Property, Plant and Equipment (including Right of use assets) or intangible assets during the year ended 31^st March, 2024.

iv. No Intangible Assets under development during the year.

v. Quarterly statements of Current Assets filed with banks and financial institutions for fund borrowed from those banks and financial institutions on the basis of security of current assets are in agreement with the books of account.

vi. No proceedings have been initiated during the year or are pending against the Company as at 31st March 2024 for holding any benami property under the benami Transactions (Prohibition) Act, 1988 (as amended in 2016) and rules made there under.

vii. The Company has not been declared willful defaulter by any bank or financial institution or government or any government authority.

viii. The company has not advanced / loaned / invested or received funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

36.7. There were no transaction relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the income tax Act,1961 (43 of 1961).

36.8 Dividend

The final dividend on shares is recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors. Income tax consequences of dividends on financial instruments classified as equity will be recognized according to where the entity originally recognized those past transactions or events that generated distributable profits.

The Company declares and pays dividends in Indian rupees. Companies are required to pay/distribute

dividend after deducting applicable TDS. The remittance of dividends outside India is governed by Indian law on foreign exchange and is also subject to withholding tax at applicable rates

The Board of Directors wish to conserve resources for future expansion and growth of the Company. Hence, your Directors have decided not to declare any dividend st for the financial year ended 31^st March, 2024.

36.9. The obligation with respect to Corporate Social Responsibility is not applicable to the Company for the financial year 2023 - 2024 since, the company has not fulfilled any one of criteria as provided in section 135 of the Companies Act, 2013.

36.10. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

36.11. The Central Government has published, the Code on Social Security, 2020 and Industrial Relations Code, 2020 ("Codes"), relating to employee benefits during employment and post-employment benefits and received presidential assent in September, 2020. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the code when it comes into effect and will record any related impact in the period, the code becomes effective.

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Mar 31, 2018

1. LOSS ON IMPAIRMENT OF INVESTMENT AND PROVISION FOR BAD DEBTS IN ASSOCIATE COMPANY:

Due to unsatisfactory outcome in our Associate Company at USA, Namely Polyspin USA Inc, the company has made a provision of Rs. 36.56 Lakhs in its standalone financial results towards impairment of Investments & trade receivables as bad debts.

2. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard (IND AS 24) issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties:

A) Associate Companies :

1. Polyspin Private Limited

2. Lankaspin Private Ltd., Srilanka.

3. Energyspin Private Ltd.

4. Chola Packaging Private Ltd.

5. Ganesh Agro Pack Private Ltd.

6. Ramji Investments Private Ltd.

B) Key Management Personnel and Relatives :

i) Sri R. RAMJI

Managing Director and CEO

ii) Sri P.K. RAMASUBRAMANIAN Secretary and Compliance Officer

iii) Sri. S. SEENIVASA VARATHAN Chief Financial Officer

iii) The Company has challenged the levy of duty of excise and customs aggregating to Rs. 393.62 Lakhs on wrong calculation of SION Norms for the consumption of UV Master batches (Imported) for production of FIBC Bags meant for export (100% E.O.U) and the same is pending before the appropriate jurisdictional authorities.

37.4 As at 31.03.2018, the company has no outstanding dues to Micro, Small and Medium Enterprises (Previous year: Nil). This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

37.5 The Company has generated power out of Wind mill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was actively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 21.05 Lakhs being the credit given by TNEB for the transfer of power to the Grid.

37.6 Our Company''s shares are listed at Bombay Stock Exchange with stock code of 539354.

37.7 Deferred Tax (AS- 22) :

Deferred Tax Liability (Net) for Rs.36.00 Lakhs as on

31.03.2018 has been provided from the Current year''s Profit in accordance with the Accounting for deferred tax in pursuance of AS-22 issued by the Institute of Chartered Accountants of India.

37.8 Figures relating to previous year have been regrouped wherever found necessary.

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Mar 31, 2016

1 Rupee Term Loan, Working capital finance from Bank is secured by a First charge, by way of equitable mortgage of specified assets under this loan.

2 Hire Purchase Loan is secured by hypothecation of Specified Vehicle purchased under the Scheme.

3 The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

4 The Term Loan from Bank are repayable in equated monthly installments.

5 Working Capital Finance from Bank is further secured by hypothecation of all Current Assets of the Company.

6. The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

7. Derivatives:

The company uses derivative financial instruments such as forward contracts (both Exports and Imports) to hedge currency exposures, present and anticipated, denominated mostly in US Dollars and Euro. Generally such contracts are taken for exposures materializing in the next twelve month. The company actively manages its currency exposures and uses derivatives to mitigate the risk from such exposures.

The use of derivative instruments is subject to limits and monitoring systems are periodically reviewed by management and the board.

iii) The Company has challenged the levy of duty of excise and customs on wrong calculation of SION Norms for the consumption of UV Master batches (Imported) for production of FIBC Bags meant for export (100% E.O.U) and the same is pending before the appropriate jurisdictional authorities.

8. As at 31.03.2016, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

9. Sales tax assessment for the year ended 31.03.2007 has been completed. Income tax assessment for the Assessment year 2013-14 has been completed.

10. The Company has generated power out of Windmill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 16.37 Lakhs being the credit given by TNEB for the transfer of power to the Grid.

11. Our Company''s shares are listed at Bombay Stock Exchange with stock code of 539354.

12. Deferred Tax (AS- 22) :

Deferred Tax Liability (Net) for Rs.62.53 Lakhs as on 31.03.2016 has been provided from the Current year''s Profit in accordance with the Accounting for deferred tax in pursuance of AS-22 issued by the Institute of Chartered Accountants of India.

13. Figures relating to previous year have been regrouped wherever found necessary.

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Mar 31, 2015

1. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties :

A) Associate Companies :

1. Polyspin Limited

2. Lankaspin (P) Ltd., Srilanka.

3. Energyspin (P) Ltd.

4. Chola Packaging Ltd.

5. Ganesh Agra Pack (P) Ltd.

B) Key management Personnel and Relatives :

i) Sri R. RAM JI

Managing Director and CEO

ii) Sri PS. RAMANATHAN

Secretary and Compliance Officer

iii) Sri. S. SEENIVASAVARATHAN Chief Financial Officer

2. Derivatives:

The company uses derivative financial instruments such as forward contracts (both Exports and Imports) to hedge currency exposures, present and anticipated, denominated mostly in US Dollars and Euro. Generally such contracts are taken for exposures materializing in the next twelve month. The company actively manages its currency exposures and uses derivatives to mitigate the risk from such exposures.

The use of derivative instruments is subject to limits and monitoring systems are periodically reviewed by management and the board.

3. As at 31.03.2015, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. The Company has generated power out of Windmill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 21.20 Lakhs being the credit given by TNEB for the transfer of power to the Grid.

5. The Company's shares, listed in Madras Stock Exchange were admitted in "Permitted to Trade" category in Bombay Stock Exchange for trading. Since, the Madras Stock Exchange has been closed under the directions of SEBI, trading of our company shares were discontinued with effect from 22.05.2015 in BSE (INDONEXT). Please note, we have already filed with BSE, the application and the fee of Rs. 5 Lakhs for direct listing of our company shares in BSE and the same is under process.

6. Deferred Tax (AS 22):

Deferred Tax Liability (Net) for Rs.36.00 Lakhs as on 31.03.2015 has been provided from the Current year's Profit in accordance with the Accounting for deferred tax in pursuance of AS 22 issued by the Institute of Chartered Accountants of India.

8. Figures relating to previous year have been regrouped wherever found necessary.

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Mar 31, 2014

1.1 Rupee Term Loan, Working capital finance from Bank is secured by a First charge, by way of equitable mortgage, of specified assets under this loan.

1.2 Hire Purchase Loan is secured by hypothecation of Specified Vehicle purchased under the Scheme.

1.3 The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

1.4 The Term Loan from Bank are repayable in equated monthly installments.

1.5 The year wise repayment to Term Loan are as follows :

2.1 Working Capital Finance from Bank is further secured by hypothecation of all Current Assets of the Company.

2.2 The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

3.1 Balance with banks includes unclaimed dividend of Rs. 22,56,193 (Previous year Rs. 19,96,162/- )

Others Includes advance to Sundry Creditors, Advance to staff.

2. The Company has fulfilled export obligations, net foreign exchange earnings and other conditions, as applicable till date, in terms of schemes of Government of India, for 100% EOU.

3. EARNINGS PER SHARE :

Year Ended Year Ended 31-03-2014 31-03-2013

a) Net Profit after Tax (Rs.in Lakhs) 315.30 101.29

b) Number of Equity Shares 40,00,000 40,00,000

c) Basic and diluted Earnings per share 7.88 2.53 (Face Value Rs.10/- per Equity Share)

4. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties :

A) Associate Companies :

1. Polyspin Limited

2. Lankaspin (P) Ltd., Srilanka.

3. Energyspin (P) Ltd.

4. Chola Packaging Ltd.

5. Ganesh Agro Pack (P) Ltd.

B) Key management Personnel and Relatives :

i. Sri R. RAMJI - Managing Director

iI. Sri P.S. RAMANATHAN - Secretary

5. SEGMENTWISE REPORTING

As required under Accounting Standard (AS17), the Segment Revenue, Results and Capital employed are furnished below :-

6. Sales tax assessment for the year ended 31.03.2007 has been completed. Income tax assessment for the Assessment year 2010-11 has been completed.

7. As at 31.03.2014, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

8. The Company has generated power out of Wind Mill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 16.41 Lacs being the credit given by TNEB for the transfer of power to the Grid.

9. The Company''s shares are listed in Madras Stock Exchange and are permitted for trading in Bombay Stock Exchange (Indonext Platform). The Listing fee for the financial year 2014-15 has been paid.

10. Deferred Tax (AS 22) :

Deferred Tax Liability (Net) for Rs. 34.31 Lakhs as on 31.03.2014 has been provided from the Current year''s Profit in accordance with the Accounting for deferred tax in pursuance of AS 22 issued by the Institute of Chartered Accountants of india.

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Mar 31, 2013

1. The Company has fulfilled export obligations, net foreign exchange earnings and other conditions, as applicable till date, in terms of schemes of Government of India, for 100% EOU.

2. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties :

A) Associate Companies :

1. Polyspin Limited

2. Lankaspin (P) Ltd., Srilanka.

3. Energyspin (P) Ltd.

4. Chola Packaging Ltd.

5. Ganesh Agro Pack (P) Ltd.

B) Key management Personnel and Relatives :

i. Sri A. RAMMOHAN RAJA - Managing Director (Upto 31st January 2013)

ii. Sri R. RAMJI - Managing Director (From 1st April 2013)

3. As at 31.03.2013, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. The Company has generated power out of Wind Mill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 17.38 Lacs being the credit given by TNEB for the transfer of power to the Grid.

5. The Company''s shares are listed in Madras Stock Exchange and are permitted for trading in Bombay Stock Exchange (Indolent Platform). The Listing fee for the financial year 2012-13 has been paid.

6. Deferred Tax (AS 22) :

Deferred Tax Liability (Net) for Rs. 20.87 Lakhs as on 31.03.2013 has been provided from the Current year''s Profit in accordance with the Accounting for deferred tax in pursuance of AS 22 issued by the Institute of Chartered Accountants of India.

7. Contingent Liabilities not Provided For :

31.03.2013 31.03.2012 ( Rs. in Lakhs)

i) Unexpired Letter of Credit 35.47 148.99

ii) Bank Guarantee 10.00 10.00

8. Figures relating to previous year have been regrouped wherever found necessary.

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Mar 31, 2012

1.1 Rupee Term Loan Working capital finance from Bank is secured by a First change, by way of equitable mortgage, of specified assets under this loan.

1.2 Hire Purchase Loan is secured by hypothecation of Specified Vehicle purchased under the Scheme.

1.3 The Loans are additionally secured by Personal Guarantee of two Directors ofthe Company.

1.4 The Term Loan from Bank are repayable in equated monthly installments.

The year wise repayment to Term Loan are as follows

2.1 Working Capital Finance from Bank is further secured by hypothecation of all Current Assets of the Company.

2.2 The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

3.1 Balance with banks includes unclaimed dividend of Rs. 17,06,620/- (Previous year Rs. 15,27,095/-)

Others Includes advance to Sundry Creditors, Advance to staff.

4. The Company has fulfilled export obligations, net foreign exchange earnings and other conditions, as applicable till date, in termsof schemesofGovernmentoflndia,for100%EOU.

5. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties :

A) Associate Companies :

1. Polyspin Limited 5. Energyspin (P) Ltd.

2. Lankaspin (P) Ltd., Srilanka. 6. Ramona Industries

3. Chola Packaging Ltd.

4. Ganesh Agro Pack (P) Ltd.

B) Subsidiary Company :

Polyspin USA Inc., USA.

C) Key management Personnel and Relatives :

i. Sri A. RAMMOHAN RAJA - Managing Director

ii. Sri R. RAMJI - Joint Managing Director

6. As at 31.03.2012, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. The Company has generated power out of Wind Mill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 16.71 Lacs being the credit given by TNEB for the transfer of power to the Grid.

8. The Company's shares are listed in Madras Stock Exchange and are permitted for trading in Bombay Stock Exchange (Indonext Platform). The Listing fee for the financial year 2012-13 has been paid.

9. Deferred Tax (AS 22):

Deferred Tax Liability (Net) for Rs. 30.70 Lakhs as on 31.03.2012 has been provided from the Current year's Profit in accordance with the Accounting for deferred tax in pursuance of AS 22 issued by the Institute of Chartered Accountants of india.

10. Figures relating to previous year have been regrouped wherever found necessary.

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Mar 31, 2011

1. The Company has fulfilled export obligations, net foreign exchange earnings and other conditions, as applicable till date, in termsof schemes of Government of India, for100%EOU.

2. SECURED LOANS:

i) Rupee Term Loan and Working capital finance from Bank is secured by a First charge, by way of equitable mortgage, of specified land and hypothecation of specified assets under this loan.

ii) Working Capital Finance from Bank is further secured by hypothecation of all Current Assets of the Company.

iii) The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

iv) Hire Purchase Loan is secured by hypothecation of Specified Vehicle purchased under the scheme.

3. The Company's Business activity falls within a single primary business segment, viz, manufacture of PP Woven FIBC Bags. As such, there are no separate reportable segments as per Accounting Standard 17.

4. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties :

A) Associate Companies:

1. Polyspin Limited 5. Energyspin (P) Ltd.

2. Lankaspin (P) Ltd., Srilanka. 6. Ramona Filaments

3. Chola Packaging Ltd. 7. Ramona Industries

4. Ganesh Agro Pack (P) Ltd.

B) Subsidiary Company: Polyspin USA Inc., USA.

C) Key management Personnel and Relatives :

i. Sri A. RAMMOHAN RAJA - Managing Director

ii. Sri R. RAMJI - Joint Managing Director

5. Sales tax assessment for the year ended 31.03.2005 has been completed. Income tax assessment for the Assessment year 2005-06 has been completed.

6. As at 31.03.2011, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

7. The Company has generated power out of Wind Mill installed at Pazhavoor Taluk, Tirunelveli District, and the generated power was captively consumed by the Company by drawing the power from TNEB Grid. The Power and Fuel consumed is net of Rs. 12.38 Lacs being the credit given by TNEB for the transfer of power to the Grid.

8. The Company's shares are listed in Madras Stock Exchange and are permitted for trading in Bombay Stock Exchange (Indonext Platform). The Listing fee for the financial year 2011-12 has been paid.

9. Deferred Tax (AS 22):

Deferred Tax Liability (Net) for Rs. 54.50 Lakhs as on 31.03.2011 has been provided from the Current year's Profit in accordance with the Accounting for deferred tax in pursuance of AS 22 issued by the Institute of Chartered Accountants in india.

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Mar 31, 2010

1. The Company has fulfilled export obligations, net foreign exchange earnings and other conditions, as applicable till date,in termsof schemes of Government of India, for100%EOU.

2. SECURED LOANS:

i) Rupee Term Loan and Working capital finance from Bank is secured by a First charge, by way of equitable mortgage, of specified land and hypothecation of specified assets under this loan.

ii) Working Capital Finance from Bank is further secured by hypothecation of all Current Assets of the Company.

iii) The Loans are additionally secured by Personal Guarantee of two Directors of the Company.

iv) Hire Purchase Loan is secured by hypothecation of Specified Vehicle purchased under the scheme.

3. The Companys Business activity falls within a single primary business segment, viz, manufacture of PP Woven FIBC Bags. As such, there are no separate reportable segments as per Accounting Standard 17.

4. REPORTING ON RELATED PARTIES :

In accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India, the Company has identified the following companies as Related parties :

A) Associate Companies :

1. Polyspin Limited 5. Energyspin (P) Ltd.

2. Lankaspin (P) Ltd., Srilanka. 6. Ramona Filaments

3. Chola Packaging Ltd. 7. Ramona Industries

4. Ganesh Agro Pack (P) Ltd.

B) Subsidiary Company: Polyspin USA Inc., USA.

C) Key management Personnel and Relatives :

i. Sri A. RAMMOHAN RAJA - Managing Director

ii. Sri R. RAMJI - Joint Managing Director

5. As at 31.03.2010, the company has no outstanding dues to Micro, Small and Medium Enterprises. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. The Companys shares are listed in Madras Stock Exchange and are permitted for trading in Bombay Stock Exchange (Indonext Platform). The Listing fee for the financial year 2010-11 has been paid.

7. Deferred Tax (AS 22):

Deferred Tax Asset for Rs.255000/- has been withdrawn from Deferred Tax Liability in accordance with Accounting for deferred tax in pursuance of AS 22 issued by the Institute of Chartered Accountants of India.

8. Contingent Liabilities not Provided For:

31.03.2010 31.03.2009

(Rs. in Lakhs)

i) Unexpired Letter of Credit 22.96 63.02

ii) Bank Guarantee 10.00 10.00

iii) Service Tax demand not ccepted

a) Dispute before the High Court 12.67 12.67

b) Under Appeal Nil 18.31

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Mar 31, 2000

For the year ended 31.03.2000 31.03.1999

1. Contingent Liabilities not Provided For :

i) Unexpired Letter of Credit : Rs. 21.32 Lacs ( Rs. 26.39 Lacs )

ii) Bank Guarantees : Rs. 10.00 Lacs ( Rs. 10.00 Lacs )

2. Figures relating to previous year have been regrouped wherever found necessary.