Notes to Accounts of Premier Polyfilm Ltd.

Mar 31, 2025

Provisions and Contingencies

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the
obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third
party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the
amount of the receivable can be measured reliably.

GST input credit

GST input credit is accounted for in the books in the period in which the underlying service received is accounted
and when there is reasonable certainty in availing/ utilising the credits.

Segment Reporting

The Company is mainly engaged in manufacturing and sale of Vinyl Flooring, PVC Sheeting and Artificial leather
clothes. From the Operations of the Company, it is considered as a single business products and accordingly
segment reporting on business segment is not required. The Company has identified its geographical segments
based in the areas in which the customers of the company are located. However, it is not feasible to maintain
the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not
prepared.

34: Other Non-Operating Income under the head Other Income of Note 22 includes ? 40.41 Lacs (Previous Year ? 40.88 Lacs)

- related to Exchange Fluctuation.

35: The Directors have recommended the payment of dividend of ? 0.15 per fully paid up equity shares. The proposed dividend

is subject to the approval of shareholders in the ensuing annual general meeting.

36: There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding

for more than 45 days as at 31st March,2025. 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.

Interest Rate Risk

Interest rate exposure of the Company is on borrowing from banks which is linked to prime lending rate of bank and the Company
does not forsee any risk on the same.Unsecured loans were taken on fixed rate of interest.The exposure of the company’s borrowing
to interest rate changes at the end of the reporting follows:

Credit Risk

The Company is exposed to credit risk from its operating activities, primarily trade receivables. The Company extends credit to
distributors in normal course of business and evaluates the concentration of risk with respect to trade receivable as low.

41 Segment Reporting:-

The Company is mainly engaged in manufacturing and sale of Vinyl Flooring, PVC Sheeting and Artificial leather clothes.
From the Operations of the Company, it is considered as a single business products and accordingly segment reporting on
business segment is not required. The Company has identified its geographical segments based in the areas in which the
customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical
segments. Hence, segment reporting on geographical segments is not prepared.

44 -During the year the company transferred f 4,15,157/-relating to unpaid dividend for the FY 2016-17 to “Investor’s’
Education Protection Fund”.

45 -Previous year figures have been regrouped, reclassified , and/or rearranged, wherever necessary to make them
comparable with current period’s classification.

As per our report of even date attached

For M A R S & Associates for and on behalf of the Board of Directors of Premier Polyfilm Limited

Chartered Accountants

Firm Registration No. 010484N

Vipul Kumar Gupta Heena Soni Amitaabh Goenka Bhupinder Kaur Marwah P.Mishra

Partner Company Secretary Managing Director & CEO Director CFO

Membership No. 522310 Membership No.A70248 DIN No. 00061027 DIN No. 08399222 PAN No. AMEPM7378R

E-15/144-145, Second Address: B 51, Jain Mandir Address: Vrindavan Farm Address: Spring House Address: Flat No.2,

Floor, Sector-8, Rohini, Gali Near RAMG Samosa, No. 1, Green Avenue No 3, Green Avenue F-Block Alaknanda-

Delhi-110085 Veer Savarkar Block, Block B, Behind Sector D-3, Behind Sector D-3, Apartment

The 17^th day of May, 2025 Mandawali, Delhi-110092 VasantKunj, Kishangarh, Vasant Kunj, Kishangarh Rampuri - Ghaziabad(U.P)

New Delhi-110070 New Delhi-110070 201011

---

Mar 31, 2024

Other Non-Operating Income under the head Other Income of Note 22 includes Rs. 40.88 Lacs (Previous Year Rs. 5.68 Lacs)- related to Exchange Fluctuation.

The Directors have recommended the payment of dividend of Rs 0.75 per fully paid up equity shares (Previous year -Rs 0.50 per fully paid up equity shares) .The proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting..

There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March,2024. This information as required to be disclosed under the Micro, Small and Medium Enterprises Develoment Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

38: Contingent Liabilities not provided for in respect of :
PARTICULARS	2023-24	2022-23
Unredeemed Bank Guarantees	Rs in Lacs 333	Rs in Lacs 292

These assumptions were developed by management with the assistance of Independent actuarial appraisers. Discount factors determined close to each year-end by reference to government bonds of relevant economic markets and that have terms to approximating to the terms of the related obligation. Other assumptions are based on management’s historical experience

Liquidity Risk:-

The Company objective is to all times maintain optimum level of liquidity to meet its cash and colleteral requirement at all times. The Company relies on Borrowing and internal accruals to meet its need for fund.

The current lines of credit are suffcient to meet its short to medium term expansion needs and hence evaluates the concentration of risk with respect to liquidity as low.

Interest Rate Risk

Interest rate exposure of the Company is on borrowing from banks which is linked to prime lending rate of bank and the Company does not for see any risk on the same. of the Company’s borrowing to interest rate changes at the end of the reporting follows: Unsecured loans were taken on fixed rate of interest.

Credit Risk

The Company is exposed to credit risk from its operating activities, primarily trade receivables. The Company extends credit to distributors in normal course of business and evaluates the concentration of risk with respect to trade receivable as low

Segment Reporting:-

The Company is mainly engaged in manufacturing and sale of Vinyl Flooring, PVC Sheeting and Artificial leather clothes. From the Operations of the Company, it is considered as a single business products and accordingly segment reporting on business segment is not required. The Company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not prepared.

During the year the company transferred Rs 4,11,273/-relating to unpaid dividend for the FY 2015-16 to “Investor’s’ Education Protection Fund”.

Figures of previous year have been regrouped, reclassified, and/or rearranged wherever necessary to confirm with current year’s presentation.

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Mar 31, 2023

Provisions and Contingencies

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

GST input credit

GST input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing/ utilising the credits.

Segment Reporting

The Company is mainly engaged in manufacturing and sale of Vinyl Flooring, PVC Sheeting and Artificial leather clothes. From the Operations of the Company, it is considered as a single business products and accordingly segment reporting on business segment is not required. The Company has identified its geographical segments based in the areas in which the customers of the company are located. However, it is not feasible to maintain the accounts on the basis of geographical segments. Hence, segment reporting on geographical segments is not prepared.

Estimation uncertainty relating to global health pandemic:

The outbreak of Corona Virus (COVID-19) pandemic globally and in India is causing significant disturbance and slowdown of economic activity. In assessing the recoverability of company’s assets such as Financial assets and Non-Financial Assets, the company has considered internal and external information. The company has evaluated impact of this pandemic on it’s business operations and based on it’s review and current indicators of future economic conditions, there are no significant impact on it’s financial statements and the company expects to recover the carrying amount of all it’s assets.

35: Other Non-Operating Income under the head Other Income of Note 22 includes Rs. 5.68 Lacs (Previous Year Rs. 18.46

Lacs- related to Exchange Fluctuation.

36: The Directors have recommended the payment of dividend of Rs 0.50 per fully paid up equity shares (Previous year -Rs

0.50 per fully paid up equity shares) .The proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

37: There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding

for more than 45 days as at 31st March,2023. This information as required to be disclosed under the Micro, Small and Medium Enterprises Develoment Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

40: Liquidity Risk:-

The Company objective is to all times maintain optimum level of liquidity to meet its cash and colleteral requirement at all times. The Company relies on Borrowing and internal accruals to meet its need for fund The current lines of credit are suffcient to meet its short to medium term expansion needs and hence evaluates the concentration of risk with respect to liquidity as low.

The table provides undiscounted cash flow towards financial liabilities into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.

For M A R S & Associates for and on behalf of the Board of Directors of Premier Polyfilm Limited

Chartered Accountants

Firm Registration No. 010484N

Vipul Kumar Gupta Heena Soni Amitaabh Goenka Bhupinder Kaur Marwah P.Mishra

Partner Company Secretary Managing Director & CEO Director CFO

Membership No. 522310 Membership No.A70248 DIN No. 00061027 DIN No. 08399222 PAN No. AMEPM7378R

E-15/144-145, Second Address: B 51, Jain Mandir Address: Vrindavan Farm Address: Spring House Address: Flat No.2,

Floor, Sector-8, Rohini, Gali Near RAMG Samosa, No. 1, Green Avenue No 3, Green Avenue F-Block Alaknanda-

Delhi-110085 Veer Savarkar Block, Block B, Behind Sector D-3, Behind Sector D-3, Apartment

The 22^nd day of May, 2023 Mandawali, Delhi-110092 VasantKunj, Kishangarh, Vasant Kunj, Kishangarh Rampuri - Ghaziabad(U.P)

New Delhi-110070 New Delhi-110070 201011

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Mar 31, 2018

1.1.1. Rights, preferences and restrictions attached to the Equity Shares

The Equity Shares of the Company, having par value of Rs. 5.00 per share, rank pari passu in all respects including voting rights and entitlement to dividend. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the share holders.

1.2.1 Term Loan from Kotak Mahindra Bank Limited is secured by equitable mortgage of immovable properties and first charge on all present and future current assets of the company alongwith fixed assets.The Loan is also secured by personal guarantees of Shri Amar Nath Goenka, Smt. Indira Goenka and Shri Amitaabh Goenka.

1.2.2 Repayable in equated monthly installments upto 5 year period from the month following the end of moratorium period of 12 months. New Term Loan of Rs. 500 Lacs repayable in equated monthly installments up to 5 year period from the month following the month of First disbursement of Term Loan.This is payable by 2022-23 and carries a rate of interest @ MCRL 2.00%.Current rate of interest @10.30 p.a.

1.2.3 The Company has taken vehicle loan from HDFC Bank Ltd. which is secured by way of hypothrcation of the vehicle, Repayable in equated monthly installments upto 5 year period , payable by 2021-22 and carries a current rate of interest @ 9.60% p.a.

1.3.1 Cash credit facility from Kotak Mahindra Bank Limited is secured by equitable mortgage of immovable properties and first charge on all present and future current assets of the Company alongwith fixed assets. The Cash Credit Facility are also secured by personal Guarantees of Shri Amar Nath Goenka, Smt. Indira Goenka and Shri Amitaabh Goenka.

1.4 The Company had claimed Trade Exemption U/S 4-A of The U.P.Trade Tax Act, 1948 amounting to Rs.709.14 Lacs from the Divisional Level Committee (DLC), Meerut (U.P.) which allowed a part of the claimed amount. Thereafter, company preferred to file Appeal against the order of DLC and over a period of time, claim of the company was allowed in parts by various forums of the department but full claimed amount of Rs. 709.14 Lacs was never granted. The matter is still pending at Allahabad High Court for exemption of balance outstanding amount of Rs.1,38,66,816 (previous year Rs. 1,38,66,816) for which exemption was not granted to the company. The Company has not paid this amount to the appropriate authorities as on date of Balance Sheet as liabilities are still disputed and under litigation.

1.5 Exports benefits are taken on realisation basis.

1.6 Information on Related Parties as required by Accounting Standard - (IND AS) 24”Related Party disclosures”

I. Related Party Disclousers

a. Key Management Personnel

- Mr. Amar Nath Goenka - Managing Director

- Mr. Amitaabh Goenka - Executive Director

- Mr. S . P. Jain - Executive Director

- Mr. N.K.Bhandari - Company Secretary

b. Relative to Key Management Personnel

- Mrs. Indira Goenka

- Mrs. Manavi Goenka

II. Details of Transactions with Related Parties

(Financial Transactions have been carried at in the ordinary course of business and/or in discharge of contractional obligation)

1.7 Other Non-Operating Income under the head Other Income of Note 2.22 includes Rs 2,791,435 (Previous Year Rs 1,783,794) related to Exchange Fluctuation.

1.8 The Directors have recommendated the payment of a dividend of Rs. 0.50 per fully paid up equity share(Previous Year -Rs. 0.50). The proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting.

1.9 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March,2018. This information as required to be disclosed under the Micro, Small and Medium Enterprises Develoment Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.10 The disclosures required under Ind AS - 19” Empolyee Benefits” notified in the Companies (Accounting Standards) Rules 2015, are given below:

1.11 Liquidity Risk:-

The Company objective is to all times maintain optimum level of liquidity to meet its cash and colleteral requirement at all times. The Company relies on Borrowing and internal accruals to meet its need for fund. The current lines of credit are suffcient to meet its short to medium term expansion needs and hence evaluates the concentration of risk with respect to liquidity as low.

The table provides undiscounted cash flow towards financial liabilities into relevant maturity based on the remaining period at balance sheet date to contractual maturity date.

1.12 Previous year figures have been regrouped /rearranged/reclassified where ever considered necessary.

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Mar 31, 2016

1. Rights, preferences and restrictions attached to the Equity Shares

The Equity Shares of the Company , having par value of Rs.5.00 per share, rank pari passu in all respects including voting rights and entitlement to dividend.

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

2. : The Company had claimed Trade Exemption U/S 4-A of The U.P.Trade Tax Act, 1948 amounting to Rs.709.14 Lacs from the Divisional Level Committee (DLC), Meerut (U.P.) which allowed a part of the claimed amount. Thereafter, company preferred to file Appeal against the order of DLC and over a period of time, claim of the company was allowed in parts by various forums of the department but full claimed amount of Rs. 709.14 Lacs was never granted. The matter is still pending at Allahabad High Court for exemption of balance outstanding amount of Rs.1,38,66,816 (previous year Rs. 1,38,66,816) for which exemption was not granted to the company. The Company has not paid this amount to the appropriate authorities as on date of Balance Sheet as liabilities are still disputed and under litigation.

3 : Exports benefits are taken on realization basis.

4 : Information on Related Parties as required by Accounting Standard - As 18 “Related Party disclosures"

5. Related Party Disclosures

6. Associates

- D.L.Millar & Company Ltd.

- Joemillars Aquatek India (P) Ltd

7. Key Management Personnel

- Mr. Amar Nath Goenka - Managing Director

- Mr. Amitaabh Goenka - Executive Director

- Mr. S . P. Jain - Executive Director

- 8

. Relative to Key Management Personnel

- Mrs. Indira Goenka

- Mrs. Manavi Goenka

9. Details of Transactions with Related Parties

(Financial Transactions have been carried at in the ordinary course of business and / or in discharge of constructional obligation )

10. : Other Non - operating Income under the Head “Other Income” of Note 2.22 includes Rs. 5,510,802 (Previous Year Rs. 2,280,182) related to Exchange Fluctuation.

11. : There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March,2016. 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.

12. Previous year figures have been regrouped / rearranged / reclassified where ever considered necessary.

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Mar 31, 2015

1. Rights, preferences and restrictions attached to the Equity Shares

The Equity Shares of the Company, having par value of Rs.5.00 per share, rank pair passé in all respects including voting rights and entitlement to dividend.

2. Term Loan from Kotak Mahindra Bank Limited is secured by equitable mortgage of immovable properties and fisrt Charge on all present and future current assets of the company alongwith fixed assets. The Loan is also secured by personal guarantees of Shri Amar Nath Goenka, Mrs. Indira Goenka and Shri Amitaabh Goenka.

3. Repayable in equated monthly installments up to 5 year period from the month following the end of moratorium period of 12 months This is payable by 2020-21 and carries a current rate of interest @ 13.25% p.a.

4. Cash credit facility from Kotak Mahindra Bank Limited is secured by equitable mortgage of immovable properties and first charge on all present and future current assets of the Company alongwith fixed assets.The Cash Credit Facilities are also secured by personal Guarantees of Shri Amar Nath Goenka, Mrs. Indira Goenka and Shri Amitaabh Goenka.

5. Information on Related Parties as required by Accounting Standard - As 18 "Related Party disclosures"

I. Related Party Disclousers

a. Associates

- D.L.Millar & Company Ltd.

- 1000 Plus Trading Inc.

- G.B. & Company

- Joemillar Aquatek India Private Ltd.

b. Key Management Personnel

- Mr. Amar Nath Goenka – Managing Director

- Mr. Amitaabh Goenka – Executive Director

- Mr. S . P. Jain – Executive Director

- Mr. N. K. Bhandari – Company Secretary

c. Relative to Key Management Personnel

- Mrs. Indira Goenka

- Mrs. Manavi Goenka

II. Details of Transactions with Related Parties

(Financial Transactions have been carried at in the ordinary course of business and / or in discharge of constructional obligation )

6. Other Non - operating Income under the Head "Other Income" of Note

7. includes Rs. 2,280,182 (Previous Year Rs. 9,63,014) related to Exchange Fluctuation.

8. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March,2015. 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. The disclosures required under Accounting Standard 15" Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

10.Previous year figures have been regrouped / rearranged / reclassified where ever considered necessary.

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Mar 31, 2013

1.1. The Company had claimed Trade Exemption U/S4-A of TheU.P.Trade Tax Act, 1948 amounting to Rs.709.14Lacs from the Divisional Level Committee (DLC), Meerut (UP.) which allowed a part of the claimed amount. Thereafter, company preferred to file Appeal against the order of DLC and over a period of time, claim of the company was allowed in parts by various forums of the department but full claimed amount of Rs. 709.14 Lacs was never granted. The matter is still pending at Allahabad High Court for exemption of balance outstanding amount of Rs. 1,38,66,816 (previous year Rs. 1,38,66,816) for which exemption was not granted to the company. The Company has not paid this amount to the appropriate authorities as on date of Balance Sheet as liabilities are still disputed and under litigation.

1.2. A Demand amounting to Rs. 14,00,756 was raised by Addl. Commissioner (Preventive), Central Excise, Ghaziabad against which the company had made an appeal before Commissioner (Appeals), Custom and Central Excise,

Ghaziabad. The appeal of the Company had been allowed by Commissioner (Appeals). The department had made an appeal before CESTAT against the order of Appealate Commissioner who had directed to Commissioner (Appeals) for reconsider the order. The Appleate Commissioner in his order dated 6th June, 2005 has again allowed the company''s appeal. Aggrived with the order, the department has made another appeal before CESTAT, which was comunicated to the Company on 17th January, 2006.

1.3 Exports benefits are taken on realisation basis.

1.4 Information on Related Parties as required by Accounting Standard -As 18 "Related Party disclosures"

I. Related Party Disclousers

a. Associates

- Premier Polyplast & Processors Ltd.

- D.L.Millar & Company Ltd. -1000 Plus Trading Inc.

- Sri Vishvanath Enterprises Ltd.

- G.B. & Company

b. Key Management Personnel

- Mr. Amar Nath Goenka - Managing Director

- Mr. Amitabh Goenka - Executive Director

- Mr. S . P. Jain - Executive Director

c. Relative to Key Management Personnel

- Mrs. Indira Goenka

- Mrs. Manavi Goenka

II. Details of Transactions with Related Parties

1.5 Other Non - operating Income under the Head "Other Income" of Note 2.22 includes Rs. 1,258,021 (Previous Year Rs. 506,121) related to Exchange Fluctuation.

1.6 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for morethan 45days asat31st March,2013. This information as required to be disclosed under the Micro, Small and Medium Enterprises Develoment Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

1.7 Previous year figures have been regrouped / rearranged / reclassified where ever considered necessary.

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Mar 31, 2012

1.1.1 Cash credit facility from Delhi Nagrik Sehkari Bank Limited is secured by hypothecation of Raw Materials, Work- in- Progress, Finished Goods, Stores & Spares and Book Debts. This Loan is collaterally secured by Personal Gurantee of Mr. Amar Nath Goenka, Managing Director and Mr. Amitabh Goenka, Director of the Company.

1.2. The Company has claimed Trade Exemption U/S 4-A of The U.P.Trade Tax Act, 1948 amounting to Rs.709.14 Lacs from the Divisional Level Committee, Meerut (U.P.) and the Divisional Level Committee allowed Rs. 471.17 Lacs.

The Company has filed an appeal for the balance amount of Rs. 237.97 Lacs in the Court of Commercial Tax Tribunal, Luck now, U.P. The case been reverted to the Divisional Level Committee, Meerut for re-consideration. The Divisional Level Committee, Meerut allowed Rs. 32.13 Lacs.

The Company has filed another appeal for the balance amount of Rs. 205.84 Lacs in the Court of Commercial Tax Tribunal, Luck now, U.P. and by its order dated 24.06.2004 the case has been reverted to the Divisional Level Committee, Meerut for re-consideration. The Divisional Level Committee, Meerut further allowed Rs. 22.41 Lacs vide its order dated 11.08.2010.

The Company has filed another appeal for the balance amount of Rs. 183.43 Lacs in the Court of commercial Tax Tribunal, Luck now, U.P. The Tribunal has allowed Rs. 47.50 Lacs by its order dated 10.08.2011 and has directed to The Divisional Level Committee to issue the order in favour of the Company.

1.3. A Demand amounting to Rs. 14,00,756 was raised by Addl. Commissioner (Preventive), Central Excise, Ghaziabad against which the company had made an appeal before Commissioner (Appeals), Custom and Central Excise, Ghaziabad. The appeal of the Company had been allowed by Commissioner (Appeals). The department had made an appeal before CESAT against the order of Appellate Commissioner who had directed to Commissioner (Appeal) for reconsider the order. The Applegate Commissioner in his order dated 6th June, 2005 has again allowed the company's appeal. Aggrieved with the order, the department has made another appeal before CESAT, which was communicated to the Company on 17th January, 2006.

1.4. Exports benefits are taken on realization basis.

1.5. During the year the Company has filed an appeal before the Ld CIT (Appeals) against addition of Rs. 66,50,000 for the Assessment year 2004-05.

1.6 Sales Tax liabilities amounting to Rs. 13,866,816 (Previous year -13,866,816) related to prior years have not been paid to the appropriate authorities as on Balance Sheet date as the liabilities are disputed.

1.7 Both National Securities Depository Limited and Central Depository Services Limited have issued ISIN Number to the company. The trading of equity shares of the Company has commenced at The Bombay Stock Exchange Limited (BSE) only on physical trading basis as SEBI'S compliance condition pertaining to conversion of 50% Public Shareholding into dematerialized form could not be fulfilled. This is likely to be complied within shortly, Once this condition is complied with, the trading in equity shares of the company at BSE would commence in dematerialized form. Trading at National Stock Exchange of India Limited continue to be suspended as NSE is yet to complete the procedure for revoking suspension in trading of equity shares of the Company.

1.8 Information on Related Parties as required by Accounting Standard - As 18 "Related Party disclosures

I. Related Party Disclosure a. Associates

- Premier Polyp last & Processors Ltd.

- RMG Polyvinyl India Ltd.

- D.L. Millar & Company Ltd.

- 1000 Plus Trading Inc.

- Poly Beek India Pvt. Ltd.

- Sri Vishvanath Enterprises Ltd.

- G.B. & Company

- Shri Amar Nath Goenka HUF

b. Key Management Personnel

- Mr. Amar Nath Goenka - Managing Director

- Mr. Amitabh Goenka - Executive Director

- Mr. S . P. Jain - Executive Director

c. Relative to Key Management Personnel

- Mrs. Indira Goenka

- Mrs. Manavi Goenka

1.9 The Company has significant amount of carried forward losses and depreciation under the Income Tax Act, 1961. However, as a matter of prudence, deferred tax assets amount has been recognized to the extent of deferred tax liability and as such there is no impact of the same in these account.

1.10 Other Non - operating Income under the Head "Other Income" of Note 2.21 includes Rs. 506,121 (Previous Year Rs. 997,643) related to Exchange Fluctuation.

1.11 There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March,2012. 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.

1.12 Contingent Liabilities not provided for in respect of :

Particulars 2011-12 2010-11

Rs. Rs.

Unredeemed Bank Guarantees 6,572,732 3,552,595

Bonds Executed in favor of Central Excise Department 15,000,000 15,000,000

1.13 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the Companies Act,1956. Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification.

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Mar 31, 2010

1. Contingent Liabiliteis not provided for, in respect of :

Current Year Previous Year

(Rs.) (Rs.)

a) Unredeemed Bank Guarantees 3,73,977 1.95.000

b) Bonds Executed in favour of

Central Excise Department 1,50,00,000 1,50,00,000

2. The Company has claimed Trade Exemption U/S 4-A of The UP. Trade Tax Act, 1948 amounting to Rs. 709.14 Lacs from the Divisional Level Committee, Meerut (U.P.) and the Divisional Level Committee allowed Rs. 471.17 Lacs.

The Company has filed an appeal for the balance amount of Rs. 237.97 Lacs in the court of Trade Tax Tribunal, Lucknow, U.P. The case been reverted to the Divisional Level Committee, Meerut for re-consideration. The Divisional Level Committee, Meerut allowed Rs. 32.13 Lacs.

The Company has filed anohter appeal for the balance amount of Rs. 205.84 Lacs in the court of Trade Tax Tribunal, Lucknow, U.P. and by its order dated 24.06.2004 the case has been reverted to the Divisional Level Committee, Meerut for re-consideration and the matter is still pending before the Divisional Level Committee, Meerut.

3. A Demand amounting to Rs. 14,00,756 was raised by Addl. Commissioner (Preventive), Central Excise, Ghaziabad against which the company had made on appeal before Commissioner (Appeals), Custome and Central Escise, Ghaziabad. The appeal of company had been allowed by Commissioner (Appeals). The department had made an appeal before CESAT against the order of Appealate Commissioner who had directed to Commissioner (Appeal) for reconsider the order. The Appleate Commissioner in his order dated 6th June, 2005 has again allowed the companys appeal. Aggrived with the order, the department has made another appeal before CESAT, which was comunicated to the company on 17th January 2006.

4. Export benefits are taken on realisation basis.

5. Sales Tax liabilites amounting to Rs. 1,61,07,816 (Previous year: 1,61,07,816) related to prior years have not been paid to the appropriate authorities as on Balance Sheet date as the liabilities are disputed.

6. The trading of the equity shares of the Company continue to be suspended at The Bombay Stock Exchange Limited (BSE) due to non completion of procedures white trading of equity shares of the company at National Stock Exchange of India Limited (NSE) continue to be suspended due to non paytment of Listing Fee and non Completion of procedures.

7. Information on Related parties as required by Accounting Standard - As 18 "Related Party disclosures" I. Related Party disclosures

a. Associates

- Premier Polyplast & Processors Ltd.

- RMG Polyvinyl India Ltd.

- D.L. Millar and Company Ltd.

- 1000 Plus Trading Inc.

- Poly Beek India Pvt. Ltd.

- Shri Amar Nath Goenka, HUF

b. Key Management Personnel

- Mr. Amar Nath Goenka - Managing Director

- Mr. Amitabh Goenka - Director

- Mr. S.P. Jain - Executive Director

c Relative of Key Management Personnel

- Mrs. Indira Goenka

- Mrs. NiSHa Goenka

8. (a) No provision for Current Tax is made due to unabsorbed business losses and depreciation as well as no tax liability under section 115 JB of the Income Tax Act, 1961.

9. Miscellaneous Receipts under the Head "Other Income" of Schedule-6 includes Rs. 10,12,818 related to Exchange Fluctuation. (Previous year Rs. 10,01,233)

10. There are no Micro, Small and Medium Enterprises, to whom the Company owes dues, which are outstanding for more than 45 days as at 31st March, 2010. 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 Campany.

11. A demand of Rs. 37,93,367 and Rs. 29,38,209 is raised by the P.F. and E.S.I.C. Authorities against the old dues for which the company has appealed to the Honble BIFR for waliver of damages amounting to Rs. 37,93,367 of P.F Authority and Rs. 29,38,209 of E.S.I.C Authority respectively.

12. The disclosures required under Accounting Standard 15 "Empolyee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below.