Accounting Policies of Prima Plastics Ltd. Company

Mar 31, 2025

Material Accounting Policy Information:

A. Basis of Preparation

a) Statement of Compliance:

These Standalone Financial Statements are prepared in accordance with the Indian Accounting Standards
("Ind AS") specified under section 133 of the Companies Act, 2013 read with Companies (Indian Accounting
Standards) Rules, 2015, as amended from time to time and the presentation requirements of Division II of
Schedule III of Companies Act, 2013.

These Standalone financial statements includes Balance Sheet as at 31 March 2025, the Statement of Profit
and Loss including Other Comprehensive Income, Statement of Cash flows and Statement of changes in
equity for the year ended March 31,2025, and a summary of material accounting policy information and other
explanatory information (together hereinafter referred to as "Financial Statements").

b) Basis of Measurement:

The financial statements have been prepared on a historical cost basis using the accrual method of
accounting basis, except for the following assets and liabilities:

(i) Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial
instruments); and

(ii) Net defined benefit plan where plan assets are measured at fair value

The Company has prepared the financial statements on the basis that it will continue to operate as a going
concern. The accounting policies have been consistently applied by the Company unless stated otherwise.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs
(except Earnings per share) as per the requirement of Schedule III, unless otherwise stated.

c) Classification of Current / Non-Current Assets and Liabilities:

Operating Cycle:

The operating cycle of an entity is the time between the acquisition of assets for processing and their
realization in cash or cash equivalents. When the entity''s normal operating cycle is not clearly identifiable, it is
assumed to be twelve months."

The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current
classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

(a) it expects to realise the asset, or intends to sell or consume it, in its normal operating cycle;

(b) it holds the asset primarily for the purpose of trading;

(c) it expects to realise the asset within twelve months after the reporting period; or

(d) the asset is cash or a cash equivalent unless the asset is restricted from being exchanged or used to
settle a liability for at least twelve months after the reporting period.

An entity shall classify all other assets as non-current.

Similarly, a liability is classified as current if:

(a) it expects to settle the liability in its normal operating cycle;

(b) it holds the liability primarily for the purpose of trading;

(c) the liability is due to be settled within twelve months after the reporting period; or

(d) it does not have an unconditional right to defer settlement of the liability for at least twelve months after
the reporting period. Terms of a liability that could, at the option of the counterparty, result in its
settlement by the issue of equity instruments do not affect its classification.

An entity shall classify all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current only.

d) Functional and Presentation Currency:

The financial statements are presented in Indian Rupees, which is the functional currency of the Company
and the currency of the primary economic environment in which the Company operates.

B. Use of estimates and judgements

The preparation of financial statements in conformity with Ind AS requires management to make judgments,
estimates and assumptions, that affect the application of accounting policies and the reported amounts of
assets, liabilities and disclosures of contingent assets and liabilities at the date of these financial statements
and the reported amounts of revenues and expenses for the periods presented. Actual results may differ from
these estimates and judgements.

The Management believes that the estimates and associated assumptions made in the preparation of these
financial statements are based on historical experience and other factors that are considered to be relevant.

Estimates and underlying assumptions are reviewed on ongoing basis. Revisions to accounting estimates
are recognised prospectively.

The following are the significant areas of estimation, uncertainty, and critical judgements in applying
accounting policies:

a) Estimates and assumptions:

(i) Useful Lives of Property, Plant & Equipment:

The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This reassessment may result in change in depreciation expense in future periods.

(ii) Defined Benefit Plans:

The accounting of employee benefit plans in the nature of defined benefit requires the Company to use
assumptions. These assumptions have been explained under employee benefits note.

(iii) Impairment of investments in subsidiaries and joint-venture:

The Company reviews its carrying value of investments carried at cost (net of impairment, if any)
annually, or more frequently when there is indication for impairment. If the recoverable amount is less
than it''s carrying amount, the impairment loss is accounted for in the statement of Profit and Loss.

(iv) Impairment of Financial Assets (other than at fair value):

The impairment provisions for Financial Assets are based on assumptions about risk of default. The
Company uses judgement in making these assumptions and selecting the inputs to the impairment
calculation, based on Company''s past history, existing market conditions as well as forward-looking
estimates at the end of each reporting period.

(v) Impairment of Non-Financial Assets:

The Company assesses at each reporting dates as to whether there is any indication that any Property,
Plant and Equipment or Intangible assets or other class of an asset or Cash Generating Unit (''CGU'') may
be impaired. If any such indication exists, the recoverable amount of the assets or CGU is estimated to
determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of
an individual asset, the Company estimates the recoverable amount of the CGU to which the asset
belongs.

(vi) Provisions

The Company estimates the provisions that have present obligations as a result of past events and it is
probable that outflow of resources will be required to settle the obligations. These provisions are
reviewed at the end of each reporting period and are adjusted to reflect the current best estimates. The
timing of recognition requires application of judgement to existing facts and circumstances which may
be subject to change.

b) Judgements:

(i) Assessment of Lease term

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116.
Identification of a lease requires significant judgment. The Company uses significant judgement in
assessing the lease term (including anticipated renewals) and the applicable discount rate.

(ii) Provision for income tax and deferred tax assets:

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted
profits for the purpose of paying advance tax, determining the provision for income taxes, including
amount expected to be paid / recovered for uncertain tax positions. The provision for taxation for the
current year has been determined by the Management based on the tax position to be considered for tax
filing and its assessment of the probability of acceptance of the same by the taxation authorities.

A deferred tax asset is recognised to the extent that it is probable that future taxable profit will be
available against which the deductible temporary differences and tax losses can be utilised. Accordingly,
the Company exercises its judgement to reassess the carrying amount of deferred tax assets at the end
of each reporting period.

(iii) Contingencies:

In the normal course of business, contingent liabilities may arise from litigation and other claims against
the Company. Potential liabilities that are possible but not probable of crystallising or are very difficult to
quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not
recognised. Potential liabilities that are remote are neither recognized nor disclosed as contingent
liability. The management judgement is involved in classification under ''remote'', ''possible'' or ''probable''
which is carried out based on expert advice, past judgements, experiences etc.

C. Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under

Companies (Indian Accounting Standards) Rules as issued from time to time. During the year ended March 31,
2025, MCA has notified Ind AS 117 - Insurance Contracts and amendments to Ind As 116 - Leases, relating to
sale and lease back transactions, applicable from April 1,2024. The Company has assessed that there is no
significant impact on its financial statements.

On May 07, 2025, MCA notified the amendments to Ind AS 21 - Effects of Changes in Foreign Exchange Rates.
These amendments aim to provide clearer guidance on assessing currency exchangeability and estimating
exchange rates when currencies are not readily exchangeable. The amendments are effective for annual
periods beginning on or after April 01,2025. The Company is currently assessing the probable impact of these
amendments on its financial statements.

D. Property, plant and equipment

Property, plant and equipment are stated at cost of acquisition or construction less accumulated depreciation
and impairment, if any.

Freehold land is measured at cost and is not depreciated.

Cost includes purchase price, non-recoverable taxes and duties, labour cost and direct overheads for self-
constructed assets and other direct costs incurred up to the date the asset is ready for its intended use. Any
trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure relating to property, plant and equipment is capitalised only when it is probable that
future economic benefits associated with these will flow to the Company and the cost of the item can be
measured reliably. Repairs and maintenance costs are recognized in the statement of Profit and Loss when
incurred.

If significant parts of an item of property, plant and equipment have different useful lives, then they are
accounted for as separate items (major components) of property, plant and equipment.

Depreciation on property, plant and equipment''s is calculated on pro-rata basis on straight-line method using
useful lives of the assets as prescribed in Schedule II of the Companies Act. 2013

The useful lives are reviewed at each year end. Changes in useful lives are treated as change in accounting
estimates.

The residual values are not more than 5% of the original cost of the assets. The asset''s residual values and
useful lives are reviewed and adjusted if appropriate.

An item of property, plant and equipment is derecognized on disposal. Any gain or loss arising from
derecognition of an item of property, plant and equipment is included in the statement of Profit and Loss.

Advances paid towards the acquisition of property, plant and equipment outstanding at each Balance Sheet
date is classified as capital advances under other non-current assets.

The Company has chosen the carrying value of Property, Plant and Equipment existing as per previous GAAP
as on date of transition to Ind AS i.e. April 01,2015 as deemed cost .

E. Capital Work in Progress

Capital work-in-progress comprises of property, plant and equipment that are not ready for their intended use
at the end of reporting period and are carried at cost comprising direct costs, related incidental expenses,
other directly attributable costs and borrowing costs.

Depreciation is not recorded on capital work-in-progress until construction and installation are complete and
the asset is ready for its intended use.

F. Intangible Assets

Intangible assets acquired are reported at cost less accumulated amortisation and accumulated impairment
losses, if any. The cost comprises purchase price, borrowing costs if capitalisation criteria are met and
directly attributable cost of bringing the asset to its working condition for the intended use.

Amortisation on other intangible assets is calculated on pro rata basis on straight line method using the
useful lives of the assets as prescribed in Schedule II of the Companies Act, 2013. The useful life is as follows:

The residual value of intangible asset is Nil. The amortisation period for intangible assets with finite useful
lives is reviewed at each year-end. Changes in expected useful lives are treated as changes in accounting
estimates.

Intangible assets which are not ready for intended use as on date of Balance Sheet are disclosed as
"Intangible assets under development".

Intangible asset is derecognised on disposal or when no future economic benefits are expected from use.
Gains or losses arising from derecognition of an intangible asset is calculated as the difference between the
net disposal proceeds and the carrying amount of the asset. Such gains or losses is recognised in the
statement of Profit and Loss.

G. Right of use assets

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

(i) the contract involves the use of identified asset;

(ii) the Company has substantially all of the economic benefits from the use of the asset through the period
of lease and;

(iii) the Company has the right to direct the use of the asset.

Company is the lessee

The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease
agreements in which it is the lessee, except for short term leases (defined as leases with a lease term of 12
months or less) and leases of low value assets. For these leases, the Company recognises the lease
payments as an operating expense on a straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in which economic benefits from the leased asset
are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined, the Company uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise of fixed lease payments (less any
lease incentives), variable lease payments, penalties, etc.

The lease liability is presented as a separate line in the Balance sheet.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease
liability (using the effective interest method) and by reducing the carrying amount to reflect the lease
payments made.

The Company remeasures lease liability and adjusts the right-of-use asset when the lease term changes,
lease payments change due to an index or guaranteed residual value, or when a lease contract is modified.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and impairment losses.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying
asset.

The right-of-use assets are presented as a separate line in Balance sheet. The Company applies Ind AS 36
Impairment of Assets to determine whether a right-of-use asset is impaired.

H. Investments in Subsidiaries & Joint Venture

The Company considers an investee company as a subsidiary company when it controls the investee
company. Control is achieved when the Company is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Company controls an investee if, and only if, the Company has:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities
of the investee)

• Exposure, or rights, to variable returns from its involvement with the investee

• The ability to use its power over the investee to affect its returns.

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement
have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of
an arrangement, which exists only when decisions about the relevant activities require unanimous consent of
the parties sharing control.

The considerations made in determining whether joint control exists are similar to those necessary to
determine control over the subsidiaries.

Investments in Subsidiaries and Joint ventures are carried at cost less accumulated impairment losses, if any.
Where an indication of impairment exists, the carrying amount of the investment is assessed and written
down immediately to its recoverable amount. On disposal of investments in Subsidiaries and Joint ventures,
the difference between net disposal proceeds and the carrying amounts are recognised in the statement of
Profit and Loss.

(A) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. All financial instruments are initially recognised when the Company
becomes a party to the contractual provisions of the instrument.

Financial assets:

(i) Initial recognition and measurement:

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

(ii) Subsequent measurement:

For purposes of subsequent measurement, financial assets are classified in two broad categories:

(a) Financial assets carried at amortised cost:

Financial assets that are held within a business model whose objective is to hold the asset in order to
collect contractual cash flows that are solely payments of principal and interest are subsequently
measured at amortised cost less impairment, if any. Interest income calculated using effective interest
rate (EIR) method and impairment loss, if any are recognised in the statement of Profit and Loss.

(b) Financial assets at fair value:

• Financial assets at fair value through other comprehensive income (FVTOCI):

Financial assets that are held within a business model whose objective is achieved by both holding the
asset in order to collect contractual cash flows that are solely payments of principal and interest and by
selling the financial assets, are subsequently measured at fair value through other comprehensive
income. Changes in fair value are recognized in the other comprehensive income (OCI). However, the
Company recognises interest income and impairment losses and its reversals in the Statement of Profit
and Loss.

On derecognition, cumulative gain or loss previously recognised in OCI is reclassified to the statement of
profit and loss.

For equity instruments, the Company may make an irrevocable election to present in other
comprehensive income (OCI) subsequent changes in the fair value. The Company makes such election
on an instrument-by-instrument basis. The classification is made on initial recognition and is
irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the
instrument, excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI
to P&L, even on sale of investment. However, the Company may transfer the cumulative gain or loss
within equity.

A financial asset which is not classified in any of the above categories is subsequently fair valued
through Statement of Profit and Loss.

For financial assets at FVTPL, net gains or losses, including any interest or dividend income, are
recognised in the Statement of Profit and Loss.

Equity instruments included within the FVTPL category are measured at fair value with all changes
recognized in the Statement of Profit & Loss.

(iii) Derecognition

A financial asset (or, where applicable, a part of a financial asset or part) is derecognised (i.e. removed from
the Company''s balance sheet) when any of the following occurs:

a) The contractual rights to cash flows from the financial asset expires;

b) The Company transfers its contractual rights to receive cash flows of the financial asset and has
substantially transferred all the risks and rewards of ownership of the financial asset;

c) The Company retains the contractual rights to receive cash flows but assumes a contractual obligation
to pay the cash flows without material delay to one or more recipients thereby substantially transferring
all the risks and rewards of ownership of the financial asset; or

d) The Company neither transfers nor retains substantially all risk and rewards of ownerships and does not
retain control over the financial assets.

In cases where Company has neither transferred nor retained substantially all of the risks and rewards of the
financial asset, but retains control of the financial asset, the Company continues to recognise such financial
asset to the extent of its continuing involvement in the financial asset. In that case, the Company also
recognises an associated liability. The financial asset and the associated liability are measured on a basis
that reflects the rights and obligations that the Company has retained.

(iv) Impairment of financial assets

The Company applies expected credit losses (“ECL ") model for measurement and recognition of loss
allowance on the following:

a) Trade receivables;

b) Financial assets measured at amortised cost (other than Trade receivables).

In case of Trade receivables, the Company follows a simplified approach wherein an amount equal to lifetime
ECL is measured and recognised as loss allowance.

In case of other assets (listed as b), the Company determines if there has been a significant increase in credit
risk of the financial assets since initial recognition, if the credit risk of such assets has not increased
significantly, an amount equal to 12-month ECL is measured and recognised as loss allowance. However, if
credit risk has increased significantly, an amount equal to lifetime ECL is measured as recognised as loss
allowance .

Subsequently, if the credit quality of the financial asset improves such that there is no longer a significant

increase in credit risk since initial recognition, the Company reverts to recognizing impairment loss allowance
based on 12-month ECL.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls), discounted at the
original effective interest rate.

Lifetime ECL are the expected credit losses resulting from all possible default events over the expected life of
a financial asset. 12-month ECL are a portion of the lifetime ECL which result from default events that are
possible within 12- month from the reporting date.

ECL are measured in a manner that they reflect unbiased and probability weighted amounts determined by a
range of outcome, taking into account the time value of money and other reasonable information available as
a result of past events, current conditions and forecasts of future economic conditions.

As a practical expedient, the Company uses a provision matrix to measure lifetime ECL on its portfolio of trade
receivables. The provision matrix is prepared based on historically observed default rates over the expected
life of trade receivables is adjusted for forward-looking estimates. At each reporting date, the historically
observed default rates and changes in the forward-looking estimates are updated.

ECL allowance (or reversal) recognised during the period is recognised as expense (or income) in the
Statement of Profit and Loss.

Financial liabilities

(i) Initial recognition and measurement:

All financial liabilities are recognised at fair value on initial recognition. Transaction costs in relation to
financial liabilities, other than those carried at fair value through profit or loss (FVTPL), are added to the fair
value on initial recognition.

(ii) Subsequent measurement:

For the purpose of subsequent measurement, financial liabilities are classified as follows:

• Financial Liabilities at Amortised cost:

Financial liabilities are classified as financial liabilities at amortised cost by default. Interest expense
calculated using effective interest method is recognised in the statement of Profit and Loss.

The effective interest method is the method of calculating the amortised cost of a financial liability and of
allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly
discounts estimated future cash payments (including all fees and points paid or received that form an integral
part of the effective interest rate, transaction costs and other premiums or discounts) through the expected
life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial
recognition .

• Financial Liabilities at Fair value through profit or loss (FVTPL):

Financial liabilities are classified as FVTPL if it is held for trading or is designated as such on initial
recognition. Changes in fair value and interest expense on these liabilities are recognised in the statement of
Profit and Loss.

(iii) Derecognition:

A financial liability (or a part of a financial liability) is derecognised from the Company''s Balance Sheet when
the obligation specified in the contract is discharged or cancelled or expires. The difference between the
carrying amount of the financial liability de- recognised and the consideration paid and payable is recognised
in the Statement of Profit and Loss.

Derivative financial instruments:

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

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

Offsetting of financial instruments:

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

Financial Liabilities & Equity Instruments:

• Classification as Debt or Equity: Debt and equity instruments issued by the Company are classified as
either financial liabilities or as equity in accordance with the substance of the contractual arrangements
and the definition of financial liability and an equity instrument.

• Equity Instrument: An equity instrument is any contract that evidences a residual interest in the assets of
an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at
the proceeds received.

(B) Fair value measurements

Fair value of financial assets and liabilities is normally determined by references to the transaction price or
market price. If the fair value is not reliably determinable, the company determines the fair value using
valuation techniques that are appropriate in the circumstances and for which sufficient data are available,
maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

The Company determines the fair value of its financial instruments on the basis of the following hierarchy:

Level 1: The fair value of financial instruments that are quoted in active markets are determined on the basis of
quoted price for identical assets or liabilities.

Level 2: The fair value of financial instruments that are not traded in an active market are determined using
valuation techniques based on observable market data.

Level 3: The fair value of financial instruments that are measured on the basis of entity specific valuations
using inputs that are not based on observable market data (unobservable inputs).

J. Income taxes

Income tax expense comprises current tax and deferred tax. Income tax expense is recognised in the
statement of Profit and Loss except when they relate to items that are recognised outside of Profit and Loss
(whether in other comprehensive income or directly in equity), in which case tax is also recognised outside
Profit and Loss.

Current Tax:

Current income taxes are determined on the basis of respective taxable income. The current income tax is
calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period.

Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and considers whether it is probable that a taxation
authority will accept an uncertain tax treatment. The Company shall reflect the effect of uncertainty for each
uncertain tax treatment by using either most likely method or expected value method, depending on which
method predicts better resolution of the treatment.

Current tax assets and liabilities are offset only if, the Company:

a) has a legally enforceable right to set off the recognised amounts; and

b) intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Deferred Tax:

Deferred taxes are recognised basis the balance sheet approach on temporary differences, being the
difference between the carrying amount of assets and liabilities in the Balance Sheet and its corresponding
tax base, that originate in one period and are capable of reversal in one or more subsequent periods. Such
deferred tax assets and liabilities are computed separately.

Deferred tax assets are recognised only to the extent it is probable that future taxable profits will be available
against which such assets can be utilized. The carrying amount of deferred tax assets is reviewed at each
reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be
available to allow all or part of the asset to be recovered.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted
or substantively enacted as on the balance sheet date and are expected to apply to taxable income in the
years in which those temporary differences are expected to be recovered or settled.

Deferred tax assets and liabilities are offset only if:

a) the Company has a legally enforceable right to set off current tax assets against current tax liabilities;
and

b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation
authority on the same taxable Company.

L. Inventories:

Inventories are valued as follows:

Raw Materials, Stores and Packing Materials:

Valued at lower of cost and net realisable value (NRV) after providing for obsolescence and other losses,
where considered necessary. The comparison of cost and net realisable value is made on an item-by-Item
basis. However, these items are considered to be realisable at cost, if the finished products, in which they will

be used, are expected to be sold at or above cost. Cost is determined on Weighted Average basis which
includes expenditure incurred for acquiring inventories like purchase price, import duties, taxes (net of tax
credit) and other costs incurred in bringing the inventories to their present location and condition. Net
realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and the estimated costs necessary to make the sale.

Work-in-progress (WIP), finished goods, stock in trade:

Valued at lower of cost or NRV. Cost of finished goods and WIP includes cost of raw materials, cost of
conversion and other costs incurred in bringing the inventories to their present location and condition. Fixed
production overheads are allocated on the basis of normal capacity of production facilities. Cost of
inventories is computed on weighted average basis .

Waste / Scrap:

Waste/Scrap inventory is valued at NRV.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs
of completion and the estimated cost necessary to make the sale.

M. Borrowing Costs:

Borrowing costs directly attributable to acquisition or construction of qualifying assets (i.e. assets which take
substantial period of time to get ready for their intended use) are capitalised as part of the cost of that asset.

All other borrowing costs such as finance costs, interest expense on lease liabilities, etc. are recognized as an
expense in the Statement of Profit and Loss in the period in which they are incurred.

N. Government Grants:

Government grants are not recognised until there is reasonable assurance that the Company will comply with
the conditions attached to them and that the grants will be received.

Government grants related to income are recognised in the Statement of Profit and Loss in the period in which
they become receivable.

Government grants relating to property, plant and equipment are presented as deferred income and are
credited to the Statement of Profit and Loss on a systematic and rationale basis over the useful life of the
asset.

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Mar 31, 2024

Note 1 (A) : Company Overview and Material Accounting Policy Information:

Company Overview:

The Prima Plastics Limited ("the Company") is a Public Limited Company, incorporated in India and has registered office at 98/4 Prima House, Daman Industrial Estate, Kadaiya, Nani Daman, Daman - 396210. It is incorporated under the Companies Act,1956 and its shares are listed on the Bombay Stock Exchange Limited. The Company is one of the leading plastic articles manufacturing company in India having Five manufacturing facilities spread across the country.

Material Accounting Policy Information:

a) Statement of Compliance:

These standalone financial statements (hereinafter referred to as "financial statements") are prepared in accordance with the Indian Accounting Standards ("Ind AS") notified under Section 133 of the Companies Act, 2013 ("the Act") read with the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, and the relevant provisions of and guidelines issued by the Securities and Exchange Board of India ("SEBI"), as applicable.

The financial statements are authorised for issue by the Board of Directors of the Company at their meeting held on May 27, 2024. The revision to these financial statements is permitted by the Board of Directors after obtaining necessary approvals or at the instance of regulatory authorities as per provisions of the Act.

b) Basis of Preparation of Accounts:

Basis of Preparation:

The financial statements have been prepared on a historical cost basis using the accrual method of accounting basis, except for the following assets and liabilities:

i. Certain financial assets and liabilities measured at fair value (refer accounting policy regarding financial instruments); and

ii. Employee''s Defined Benefit Plan as per Actuarial Valuation.

Fair value is the price 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 under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique.

The accounting policies are applied consistently to all the periods presented in the Standalone Financial Statements.

Functional and Presentation Currency:

The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates.

Classification of its assets and liabilities into Current/Non-Current:

The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

i. It is expected to be realised, or is intended to be sold or consumed, in the normal operating cycle; or

ii. It is held primarily for the purpose of trading; or

iii. It is expected to realise the asset within twelve months after the reporting period; or

iv. The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current. Similarly, a liability is classified as current if:

i. It is expected to be settled in the normal operating cycle; or

ii. It is held primarily for the purpose of trading; or

iii. It is due to be settled within twelve months after the reporting period; or

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current only.

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs (except Earnings per share) as per the requirement of Schedule III, unless otherwise stated.

c) Property, Plant and Equipment (PPE):

PPE are stated at their cost of acquisition/installation or construction net of accumulated depreciation, and impairment losses, if any. The initial cost of PPE comprises of its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs of decommissioning.

Subsequent expenditure relating to PPE are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the Statement of Profit and Loss in the period in which the costs are incurred.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

The Company has chosen the carrying value of Property, Plant and Equipment existing as per previous GAAP as on date of transition to Ind AS i.e. April 01,2015 as deemed cost.

Derecognition:

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an item of property, plant and equipment is measured as the difference between the net disposal proceeds and the carrying amount of the item and is recognized in the Statement of Profit and Loss when the item is derecognized. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.

d) Capital Work in Progress:

Expenditure/ Income during construction period (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) is included under Capital Work-in-Progress, and the same is allocated to the respective PPE on the completion of their construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under "Other non-current Assets".

e) Depreciation:

Depreciation on PPE is the systematic allocation of the depreciable amount over its useful life and is provided on a straight-line basis over such useful lives as prescribed in Schedule II to the Act. Freehold Land with indefinite life is not depreciated.

Depreciable amount of PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE is expected to be available for use by the Company.

Depreciation on additions is provided on a pro-rata basis from the date of acquisition or installation. Depreciation on deductions/ disposals is provided on a pro-rata basis till the date of such sale or disposal.

f) Intangible Assets and Amortization:

Intangible assets with finite useful life that are acquired separately are stated at acquisition cost less accumulated amortization and impairment losses, if any. Cost comprises the purchase price (net of tax / duty credits availed wherever applicable) and any directly attributable cost of bringing the assets to its working condition for its intended use. The Company determines the useful life as the period over which the future economic benefits will flow to the Company after taking into account all relevant facts and circumstances.

Intangible assets which are not ready for intended use as on date of Balance Sheet are disclosed as "Intangible assets under development".

Intangible Assets with finite lives are amortized on a Straight Line basis over the estimated useful economic life. The amortization expense on intangible assets with finite lives is recognized in the Statement of Profit and Loss. The estimated useful life and amortization method is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis. If any of these expectations differ from previous estimates, such change is accounted for as a change in an accounting estimate.

The estimated useful life and amortization method is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

Class of intangible assets and their estimated useful lives are as under:

No.	Nature	Useful Life
1	Software	5 years

Derecognition :

The carrying amount of an intangible asset is derecognized on disposal or when no future economic benefits are expected from its use or disposal. The gain or loss arising from the Derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the intangible asset and is recognized in the Statement of Profit and Loss when the asset is derecognized.

g) Impairment of Non-Financial Assets:

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognied in the Statement of Profit and Loss for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in the Statement of Profit and Loss.

h) Inventories:

Inventories are valued as follows:

Raw Materials, Stores and Packing Materials:

Valued at lower of cost and net realisable value(NRV) after providing for obsolescence and other losses, where considered necessary. The comparison of cost and net realisable value is made on an item-by-Item basis. However, these items are considered to be realisable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on Weighted Average basis which includes expenditure incurred for acquiring inventories like purchase price, import duties, taxes (net of tax credit) and other costs incurred in bringing the inventories to their present location and condition. . Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

Work-in-progress (WIP), finished goods, stock in trade:

Valued at lower of cost or NRV. Cost of finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Fixed production overheads are allocated on the basis of normal capacity of production facilities. Cost of inventories is computed on weighted average basis.

Waste / Scrap:

Waste/Scrap inventory is valued at NRV.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated cost necessary to make the sale.

i) Borrowing Costs:

General and specific borrowing cost that are attributable to the acquisition or construction of qualifying asset, are capitalised as a part of the cost of such asset up to the date when such assets is ready for its intended use and borrowing costs are being incurred. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost are recognised as an expense in the period in which they are incurred.

Investment Income earned on the temporary investment of funds of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Borrowing cost includes interest expense and other ancillary costs incurred in connection with borrowing of funds.

j) Government Grants:

Government grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attached to them and that the grants will be received.

Government grants related to income under State Investment Promotion Scheme linked with VAT / GST payment, are recognised in the Statement of Profit and Loss in the period in which they become receivable.

Government grants relating to property, plant and equipment are presented as deferred income and are credited to the Statement of Profit and Loss on a systematic and rationale basis over the useful life of the asset.

k) Provisions, Contingent Liabilities and Contingent Assets:

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

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

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non - occurrence of one or more uncertain future events not wholly within the control of the Company.

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

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

Contingent assets are not recognised in financial statements since this may result in the recognition of income that may never be realised. However, when the realization of income is virtually certain, then the related asset is not a contingent asset and is recognised. A contingent asset is disclosed, in financial statements, where an inflow of economic benefits is probable.

l) Revenue Recognition:

(i) Revenue from Contracts with Customers

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

• Revenue towards satisfaction of a performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods or service is net of variable consideration on account of discounts, incentives, volume rebates and schemes offered by the Company as part of the contract.

• Due to the short nature of credit period given to customers, there is no financing component in the contract.

• Any amounts receivable from the customer are recognised as revenue after the control over the goods sold are transferred to the customer which is generally on dispatch of goods. Export sales are recognized on the issuance of Bill of Lading / Airway bill by the carrier.

• Variable consideration - This includes incentives, volume rebates, discounts etc. It is estimated at contract inception considering the terms of various schemes with customers and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. It is reassessed at end of each reporting period.

• Significant financing component - Generally, the Company receives short-term advances from its customers. Using the practical expedient in Ind AS 115, the Company does not adjust the promised amount of consideration for the effects of a significant financing component if it expects, at contract inception, that the period between the transfer of the promised good or service to the customer and when the customer pays for that good or service will be one year or less.

Contract Balances:

Trade Receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).

Contract liabilities

A contract liability is the obligation to transfer goods to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

(ii) Dividend income is accounted for when the right to receive the income is established.

(iii) Interest income is recognised using the Effective Interest Rate Method.

(iv) Export incentives under various schemes notified by the Government have been recognised on the basis of applicable regulations, and when reasonable assurance to receive such revenue is established.

(v) Insurance claims are accounted for on the basis of claims admitted / expected to be admitted and to the extent that the amount recoverable can be measured reliably and it is reasonable to expect ultimate collection.

m) Lease:

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

(i) the contract involves the use of identified asset;

(ii) the Company has substantially all of the economic benefits from the use of the asset through the period of lease and;

(iii) the Company has the right to direct the use of the asset As a lessee

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

Certain lease arrangements include the option to extend or terminate the lease before the end of the lease term. The right-of- use assets and lease liabilities include these options when it is reasonably certain that the option will be exercised.

The ROU is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term.

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

Lease payments included in the measurement of the lease liability comprises fixed payments, including insubstance fixed payments.

The lease liability is subsequently measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the ROU, or is recorded in Statement of Profit and Loss if the carrying amount of the ROU has been reduced to zero.

Variable lease payments that do not depend on an index or rate are not included in the measurement the lease liability and the ROU asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in the line "Other Expenses" in the Statement of Profit and Loss.

Lease Liabilities have been presented in ''Financial Liabilities'' and the ''ROU'' have been presented separately in the Balance Sheet. Lease payments have been classified as financing activities in the Statement of Cash Flows.

Short-term leases:

The Company has elected not to recognise ROU and lease liabilities for short term leases that have a lease term of 12 months or lower.

The Company recognises the lease payments associated with these leases as an expense over the lease term. The related cash flows are classified as Operating activities in the Statement of Cash Flows.

As a lessor

A lessor shall classify each of its leases as either an operating lease or a finance lease.

Finance leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. Company shall recognise assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

Operating leases

A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. Company shall recognise lease payments from operating leases as income on straight line basis over the term of relevant lessee.

n) Employee Benefit Expense:

• Short-term employee benefits:

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

• Post-employment benefits :

• The Company operates the following post - employment schemes:

• - Defined contribution plans such as provident fund; and

• - Defined benefit plans such as gratuity

Defined benefit plan:

The Company has defined benefit plan for post-employment benefits, for all employees in the form of Gratuity administered through trust funded with Life Insurance Corporation of India. The Company''s liabilities under Payment of Gratuity Act are determined on the basis of independent actuarial valuation.

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

Re-measurement, comprising actuarial gains and losses, the effect of the changes to the asset ceiling (if applicable) and the return on plan assets (excluding net interest), is reflected immediately in the Balance Sheet with a charge or credit recognised in Other Comprehensive Income (OCI) in the period in which they occur. Remeasurement recognised in OCI is reflected immediately in retained earnings and will not be

reclassified to Statement of Profit and Loss. Past service cost is recognised in the Statement of Profit and Loss in the period of a plan amendment. Interest is calculated by applying the discount rate at the beginning of the period to the net defined benefit liability or asset and is recognised in the Statement of Profit and Loss.

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

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

• Defined contribution plan:

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

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

o) Income Taxes:

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

• Current Tax:

• Income-tax Assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, by the end of reporting period. Current Tax items are recognised in correlation to the underlying transaction either in the Statement of Profit and Loss, other comprehensive income or directly in equity.

• Deferred Tax:

Deferred tax is recognised, on all temporary differences at the reporting date between the tax base of assets and liabilities and their carrying amounts for financial reporting purpose.

Deferred tax liabilities and assets are measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting date.

Minimum Alternate Tax (MAT) Credits are in the form of unused tax credits that are carried forward by the Company for a specified period of time, hence it is grouped with Deferred Tax Asset. MAT is recognised 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.

Current tax assets and current tax liabilities are offset when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle the asset and the liability on a net basis. Deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period date and are reduced to the extent that it is no longer probable.

p) Foreign Currency Transactions:

Foreign currency transactions are recorded at exchange rate prevailing on the date of the transactions. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the Balance Sheet date.

Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognised in the statement of profit and loss. Non- monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.

Non-Monetary items that are measured in terms of historical cost in a foreign currency are translated using exchange rate as at the date of initial transactions.

q) Earnings Per Share:

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

For the purpose of calculating diluted earnings per share, net profit/loss after tax for the year attributable to the equity shareholders is divided by the weighted average number of equity shares outstanding during the year adjusted for the effects of all dilutive equity shares.

r) Investment in Subsidiary & Joint Venture:

The Company''s investment in its Subsidiary and Joint Venture are carried at cost net of accumulated impairment loss, if any. On disposal of the Investment, the difference between the net disposal proceeds and the carrying amount is charged or credited to the Statement of Profit and Loss. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount.

s) Fair Value Measurement:

The Company measures certain financial instruments at fair value at each reporting date;

Certain accounting policies and disclosures require the measurement of fair values, for both financial and non- financial assets and liabilities;

Fair value is the price 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 in the principal or, in its absence, the most advantageous market to which the Company has access at that date. The fair value of a liability also reflects its non-performance risk;

The best estimate of the fair value of a financial instrument on initial recognition is normally the transaction price - i.e. the fair value of the consideration given or received. If the Company determines that the fair value on initial recognition differs from the transaction price and the fair value is evidenced neither by a quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to defer the difference between the fair value on initial recognition and the transaction price. Subsequently that difference is recognised in Statement of Profit and Loss on an appropriate basis over the life of the instrument but no later than when the valuation is wholly supported by observable market data or the transaction is closed out;

While measuring the fair value of an asset or liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation technique as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities

Level 2: inputs other than quoted prices included in Level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices)

Level 3: inputs for the assets or liability that are not based on observable market data (unobservable inputs);

When quoted price in active market for an instrument is available, the Company measures the fair value of the instrument using that price. A market is regarded as active if transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis;

If there is no quoted price in an active market, then the Company uses valuation techniques that maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen valuation technique incorporates all of the factors that market participants would take into account in pricing a transaction;

The Company regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the Company assesses the evidence obtained from third parties to support the conclusion that these valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which the valuations should be classified.

t) Financial Instruments:

A Financial Instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Financial assets & financial liabilities are recognised when the Company becomes party to contractual provisions of the relevant instruments.

Initial Recognition and Measurement:

On initial recognition, All, financial assets and liabilities are initially recognised at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value of the financial assets or financial liabilities on initial recognition. Transaction costs directly attributable to acquisition or issue of financial assets or financial liabilities at fair value through profit or loss are charged to the Statement of Profit and Loss over the tenure of the financial assets or financial liabilities.

However, trade receivables that do not contain a significant financing component are measured at transaction price.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments

Classification and Subsequent Measurement: Financial Assets • Financial assets carried at Amortised Cost:

A financial asset shall be classified and measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On de-recognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to ''other income'' in the Statement of Profit and Loss.

For equity instruments, the Company may make an irrevocable election (on initial recognition) to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by- instrument basis.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the Other Comprehensive Income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

Financial assets at Fair Value through Other Comprehensive Income (FVTOCI):

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at FVOCI. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured using the EIR method and impairment losses, if any are recognised in the Statement of Profit and Loss. On de-recognition, cumulative gain or loss previously recognised in OCI is reclassified from the equity to ''other income'' in the Statement of Profit and Loss.

For equity instruments, the Company may make an irrevocable election (on initial recognition) to present in other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by- instrument basis.

If the Company decides to classify an equity instrument as at FVOCI, then all fair value changes on the instrument, excluding dividends, are recognised in the Other Comprehensive Income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and loss, even on sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the Statement of Profit and Loss.

• Financial assets at Fair Value through profit or loss (FVTPL):

A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at amortised cost or at fair value through OCI.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

For financial assets at FVTPL, net gains or losses, including any interest or dividend income, are recognised in the Statement of Profit and Loss.

• Classification and Subsequent Measurement: Financial Liabilities:

Financial liabilities are classified as either financial liabilities at FVTPL or ''other financial liabilities''.

• Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition at FVTPL. Gains or losses, including interest expenses on liabilities held for trading are recognised in the Statement of Profit and Loss.

• Other Financial Liabilities:

Other Financial liabilities (including borrowings and trade and other payables) are subsequently measured at amortised cost using the effective interest method.

The effective interest method is the method of calculating the amortised cost of a financial liability and of allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

• Impairment of financial assets:

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

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

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

• Derecognition of Financial Instruments :

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

On derecognition of a financial asset, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity is recognised in the Statement of Profit and Loss.

A financial liability (or a part of a financial liability) is derecognised from the Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or expires. The difference between the carrying amount of the financial liability de- recognised and the consideration paid and payable is recognised in the Statement of Profit and Loss.

Derivative financial instruments :

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

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

Offsetting of financial instruments:

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

Embedded Derivatives

If the hybrid contract contains a host that is a financial asset within the scope of Ind AS 109, the classification requirements contained in Ind AS 109 are applied to the entire hybrid contract.

Derivatives embedded in all other host contracts, including financial liabilities are accounted for as separate derivatives and recorded at fair value, if their economic characteristics and risks are not closely related to those of the host contracts and the host contracts are not held for trading or designated at FVTPL.

These embedded derivatives are measured at fair value with changes in fair value recognised in Statement of Profit and Loss, unless designated as effective hedging instruments.

u) Financial Liabilities & Equity Instruments :

• Classification as Debt or Equity :

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of financial liability and an equity instrument.

• Equity Instrument :

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognised at the proceeds received.

v) Cash and Cash Equivalents :

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

For the purpose of Statement of Cash Flows, Cash and cash equivalents include cash at bank, cash, cheque and draft on hand net off of outstanding bank overdrafts as they are considered an integral part of the Company''s cash management. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

w) Segment Reporting - Identification of Segments :

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

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

x) Cash Flow Statement :

Cash flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transactions of a non- cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

y) Dividend:

Final dividend on shares are 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.

Note 1 (B): Critical accounting judgements and key sources of estimation uncertainty :

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

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

a) Useful Lives of Property, Plant & Equipment :

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

b) Defined Benefit Plans :

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

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

c) Fair Value Measurement of Financial Instruments :

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

d) Expected Credit Losses on Financial Assets :

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

e) Classification of Lease Ind AS 116 :

Ind AS 116 Leases requires a lessee to determine the lease term as the non-cancellable period of a lease adjusted with any option to extend or terminate the lease, if the use of such option is reasonably certain. The Company makes an assessment on the expected lease term on lease by lease basis and thereby assesses whether it is reasonably certain that any options to extend or terminate the contract will be exercised. In evaluating the lease term, the Company considers factors such as any significant leasehold improvements undertaken over the lease term, costs relating to the termination of lease and the importance of the underlying lease to the Company''s operations taking into account the location of the underlying asset and the availability of the suitable alternatives. The lease term in future periods is reassessed to ensure that the lease term reflects the current economic circumstances. The discount rate is generally based on the incremental borrowing rate specific to the lease being evaluated or for a portfolio of leases with similar characteristics.

f) Recognition and measurement of deferred tax assets and liabilities :

Deferred tax assets and liabilities are recognised for deductible temporary differences and unused tax losses for which there is probability of utilisation against the future taxable profit. The Company uses judgement to determine the amount of deferred tax liability/ asset that can be recognised, based upon the likely timing and the level of future taxable profits and business developments.

g) Income Taxes :

The Company calculates income tax expense based on reported income and estimated exemptions / deduction likely available to the Company The Company is continuing with higher income tax rate option,

based on the available outstanding MAT credit entitlement to the Company. However, the Company has applied the lower income tax rates on the deferred tax assets / liabilities to the extent these are expected to realised or settled in the future when the Company may be subject to lower tax rate based on the future financials projections.

h) Other accounting Judgements:

• Valuation of inventories

• Measurement and likelihood of occurrence of provisions and contingencies;

Recent Indian Accounting Standard (Ind AS) pronouncements which are not yet effective:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

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Mar 31, 2018

NOTES FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS Note 32 (A): Company Overview and Significant Accounting Policies Company Overview:

The Prima Plastics Limited (“the Company”) is a Public Limited Company, incorporated in India and has registered office at 98/4 Prima House, Daman Industrial Estate, Nani Daman, Daman - 396210. It is incorporated under the Companies Act, 2013 and its shares are listed on the Bombay Stock Exchange Limited. The Company is one of the leading plastic moulded article manufacturing company in India having 4 manufacturing facilities spread across the country.

Significant Accounting Policies: a) Statement of Compliance:

These financial statements are prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, the relevant provisions of the Companies Act, 2013 (the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI), as applicable.

The Financial Statements for the year ended March 31, 2018 are the Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Accordingly, the Company has prepared an Opening Ind AS Balance Sheet as on April 1, 2016 and comparative figures for the year ended March 31, 2017 are also in compliance with Ind AS. An explanation of how the transition to Ind AS has affected the previously reported financial position, financial performance and cash flows of the Company is provided in Note 51.

The financial statements are authorized for issue by the Board of Directors of the Company at their meeting held on May 28, 2018.

b) Basis of Preparation of Accounts:

Basis of Preparation:

The financial statements have been prepared on a historical cost basis, except for the following assets and liabilities:

i. Financial Instruments measured at Fair Value.

ii. Certain financial assets and liabilities measured at fair value through profit or loss; and

iii. Employee''s Defined Benefit Plan as per Actuarial Valuation.

Fair value is the price 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 under current market conditions, regardless of whether that price is directly observable or estimated using another valuation technique.

Functional and Presentation Currency:

The financial statements are presented in Indian Rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates.

Classification of Assets and Liabilities into Current/Non-Current:

The Company has ascertained its operating cycle as twelve months for the purpose of Current/ Non-Current classification of its Assets and Liabilities.

For the purpose of Balance Sheet, an asset is classified as current if:

i. It is expected to be realized, or is intended to be sold or consumed, in the normal operating cycle; or

ii. It is held primarily for the purpose of trading; or

iii. It is expected to realize the asset within twelve months after the reporting period; or

iv. The asset is a cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

Similarly, a liability is classified as current if:

i. It is expected to be settled in the normal operating cycle; or

ii. It is held primarily for the purpose of trading; or

iii. It is due to be settled within twelve months after the reporting period; or

NOTES FORMING PART OF THE STANDALONE FINANCIAL STATEMENTS

iv. The Company does not have an unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could result in its settlement by the issue of equity instruments at the option of the counterparty does not affect this classification.

All other liabilities are classified as non-current.

c) Property, Plant and Equipment (PPE):

The initial cost of PPE comprises of its purchase price, including import duties and non-refundable purchase taxes, and any directly attributable costs of bringing an asset to working condition and location for its intended use, including relevant borrowing costs and any expected costs of decommissioning, less accumulated depreciation and accumulated impairment losses, if any.

Subsequent expenditure relating to PPE are capitalized only when it is probable that future economic benefits associated with these will flow to the Company and cost of the item can be measured reliably. Repairs and maintenance cost are charged to the Statement of Profit and Loss in the period in which the costs are incurred.

If significant parts of an item of PPE have different useful lives, then they are accounted for as separate items (major components) of PPE.

d) Capital Work in Progress:

Expenditure/ Income during construction period (including financing cost related to borrowed funds for construction or acquisition of qualifying PPE) is included under Capital Work-in-Progress, and the same is allocated to the respective PPE on the completion of their construction. Advances given towards acquisition or construction of PPE outstanding at each reporting date are disclosed as Capital Advances under “Other non-current Assets".

e) Depreciation:

Depreciation on PPE is the systematic allocation of the depreciable amount over its useful life and is provided on a straight-line basis over such useful lives as prescribed in Schedule II to the Act or as per technical assessment.

Depreciable amount of PPE is the cost of PPE less its estimated residual value. The useful life of PPE is the period over which PPE is expected to be available for use by the Company.

In case of certain classes of PPE, the Company uses different useful lives than those prescribed in Schedule II to the Act. The useful lives have been assessed based on technical advice, taking into account the nature of the PPE and the estimated usage of the asset on the basis of management''s best estimation of obtaining economic benefits from those classes of assets.

f) Depreciation on additions is provided on a pro-rata basis from the date of acquisition. Depreciation on deductions/disposals is provided on a pro-rata basis till the date of such sale or disposal.

g) Intangible Assets and Amortization

Intangible assets with finite useful life that are acquired separately are stated at acquisition cost less accumulated amortization and impairment losses, if any. The Company determines the useful life as the period over which the future economic benefits will flow to the Company after taking into account all relevant facts and circumstances. The estimated useful life and amortization method is reviewed periodically, with the effect of any changes in estimate being accounted for on a prospective basis.

h) Impairment of Non-Financial Assets:

Assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset''s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less cost of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units).

i) Inventories:

Inventories are valued as follows:

- Raw materials:

Value at lower of cost and net realizable value(NRV). However, these items are considered to be realizable at cost, if the finished products, in which they will be used, are expected to be sold at or above cost. Cost is determined on First in First out (FIFO) basis.

- Work-in-progress (WIP), finished goods, stock in trade and trial run inventories:

Valued at lower of cost or NRV. Cost of finished goods and WIP includes cost of raw materials, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of inventories is computed on weighted average basis.

- Stores & spare parts and packing materials are valued at cost

- Waste / Scrap

Waste/Scrap inventory is valued at NRV.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated cost necessary to make the sale.

j) Borrowing Costs:

General and Specific Borrowing Cost Attributable to acquisition of Qualifying Assets, are capitalized as a part of the cost of such asset up to the date when such assets are ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use. All other borrowing cost are recognized as an expense in the period in which they are incurred.

k) Provisions, Contingent Liabilities and Contingent Assets:

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

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

A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non -occurrence of one or more uncertain future events not wholly within the control of the Company.

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

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

l) Revenue Recognition:

Revenue is recognized to the extent that is probable that the economic benefits will flow to the Company and the amount can be reliably measured.

- Revenue is measured at the fair value of consideration received or receivable taking into account the amount of discounts, volume rebates, outgoing sales taxes and are recognized when all significant risks and rewards of ownership of the goods sold are transferred.

- Dividend income is accounted for when the right to receive the income is established.

- Interest income is recognized using effective interest rate method. m) Lease:

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as Operating Leases.

- Operating Lease:

Lease rentals are charged or recognized in the Statement of Profit and Loss on a straight-line basis over the lease term, except where the payments are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increase.

- Finance Lease:

Assets held under finance leases are recognized as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation. Lease payments are apportioned between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are charged to the Statement of Profit and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company''s policy on borrowing costs.

n) Employee Benefit Expense:

- Defined benefit plan:

The Company has defined benefit Plans for post-employment benefits, for all employees in the Form of Gratuity administered through trust funded with Life Insurance Corporation of India. The Company''s liabilities under Payment of Gratuity Act are determined on the basis of independent actuarial valuation.

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

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

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

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

- Defined contribution plan:

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

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

- Short-term employee benefits:

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

o) Income Taxes:

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

- Current Tax:

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

- Deferred Tax:

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting date.

A deferred tax asset is recognized to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilized. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period date and are reduced to the extent that it is no longer probable.

p) Foreign Currency Transactions:

Foreign currency transactions are recorded at exchange rate prevailing on the date of the transaction. Foreign currency denominated monetary assets and liabilities are restated into the functional currency using exchange rates prevailing on the Balance sheet date. Gains and losses arising on settlement and restatement of foreign currency denominated monetary assets and liabilities are recognized in the statement of profit and loss. Non- monetary items carried at fair value that are denominated in foreign currencies are translated at the rates prevailing at the date when the fair value was determined.

Non-Monetary items that are measured in terms of historical cost in a foreign currency are translated using exchange rate as at the date of initial transactions.

q) Earnings Per Share:

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

For the purpose of calculating diluted earnings per share, net profit/loss after tax for the year attributable to the to the equity shareholders and the weighted average number of equity shares outstanding during the year are adjusted for the effects of all dilutive equity shares

r) Investment in Subsidiary & Joint Venture:

The Company''s investment in its Subsidiary and Joint Venture are carried at cost. s) Financial Instruments:

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

Initial Recognition and Measurement:

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Transaction costs directly attributable to acquisition or issue of financial assets or financial liabilities at fair value through profit or loss at recognized immediately in the Statement of Profit and Loss.

Classification and Subsequent Measurement: Financial Assets

- Financial assets carried at Amortized Cost:

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

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

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

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

A financial asset shall be classified and measured at fair value through profit or loss unless it is measured at Amortized cost or at fair value through OCI.

- Classification and Subsequent Measurement: Financial Liabilities

Financial liability are classified as either financial liabilities at FVTPL or ‘other financial liabilities''.

- Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial liability is held for trading or are designated upon initial recognition at FVTPL. Gain or losses on liabilities held for trading are recognized in the Statement of profit or loss.

- Other Financial Liabilities:

Other Financial liabilities (including borrowings and trade and other payables) are subsequently measured at Amortized cost using the effective interest method.

The effective interest method is the method of calculating the Amortized cost of a financial liability and of allocating interest expenses over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

- Impairment of financial assets:

In accordance with Ind AS 109, the Company uses ‘Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL). Expected credit losses are measured through a loss allowance at an amount equal to:

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

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

- Derecognition of Financial Instruments:

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

AS 109.

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

t) Cash and cash equivalents

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

u) Financial Liabilities & equity instruments:

- Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definition of financial liability and an equity instrument.

- Equity Instrument

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by a Company are recognized at the proceeds received.

v) Segment Reporting - Identification of Segments:

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

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

Note 32 (B): Critical accounting judgments and key sources of estimation uncertainty:

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

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

a) Useful Lives of Property, Plant & Equipment:

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

b) Defined Benefit Plans and Compensated Absences:

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

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

c) Fair Value Measurement of Financial Instruments:

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

d) Expected Credit Losses on Financial Assets:

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

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Mar 31, 2017

NOTES TO FINANCIAL STATEMENT FOR THE YEAR ENDED MARCH 31, 2017 NOTE NO.1

COMPANY OVERVIEW BACKGROUND

The Prima Plastics Ltd. (“the Company''”) is a public limited Company, incorporated in India and has register office at 98/4 Prima House, Daman Industrial Estate, Nani Daman, Daman -396210. It is incorporated under the Companies Act, 2013 and its shares are listed on the Bombay Stock Exchange Limited. The Company is one of the leading plastic moulded articles manufacturing company in India having 3 manufacturing facilities spread across the country.

NOTE NO. 2 SIGNIFICANT ACCOUNTING POLICIES: 1) Basis of Preparation of Financial Statements:

The financial statements are prepared in accordance with generally accepted accounting principles in India under the historical cost convention on an accrual basis Pursuant to section 133 of the Companies Act, 2013 (‘The Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

The preparation of financial statements requires to make estimates and assumptions by the Management and that may affect the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known/ materialized.

All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

2) Revenue Recognition:

a) Sales are recognized at the time of transfer of ownership and significant risk of goods to the customer. Service income is recognized when the service is rendered. Sales & Services are accounted for net of Excise Duty, VAT, Service tax, returns & claims etc.

b) Sales exclude recovery of charges separately collected from customers like transport, packing etc.

c) The Company adopts the mercantile method in the preparation of the accounts. claims / Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

d) Export sales are recognized based on the shipped on board date as per bill of lading, which is when substantial risks and rewards of ownership are passed to the customers.

e) Dividend income is recognized when right to receive dividend is established and there is no uncertainty as to its reliability.

f) Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

3) Tangible and Intangible Fixed Assets

(a) Tangible Fixed Assets

Tangible fixed assets are carried at the cost of acquisition or construction, less accumulated depreciation/accumulated impairment. The cost of fixed assets comprises of its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use.

Capital Work-in-Progress includes expenditure during construction period incurred on projects under implementation treated as pre-operative expenses pending allocation to the assets. These expenses are apportioned to the respective fixed assets on their completion / commencement of commercial production.

(b) Intangible Fixed Assets

Intangible fixed assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization

Gains/losses arising from retirement or disposal of fixed assets which are carried at cost are recognized in the Statement of Profit t and Loss.

4) Depreciation:

Depreciation on tangible fixed assets is provided using the Straight Line Method based on the useful lives of the assets as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement of Schedule II of the Companies Act, 2013.

Leasehold land is amortized over the primary period of lease.

Intangible Assets are amortized on a Straight Line basis over the estimated useful economic life.

5) Impairment of Assets:

At Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Company''s assets. If any such indication exists, the asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years are recorded when there is an indication that impairment loss recognized for the asset no longer exists or has been decreased.

6) Investments:

Investment in Subsidiary / Joint Venture are held for long term and valued at cost reduced by diminution of permanent nature therein, if any.

7) Inventories:

Inventories includes Raw Material, Work-in-Progress, finished goods, Store & Spare, Packing Material are valued at lower of cost and net realizable value.

Raw Material and Components: Cost include cost of purchases and other costs incurred in bringing the inventories to their present location and condition. Cost is determined using First in first out (FIFO) basis.

Finished Goods: Cost includes cost of direct material, labor, other direct cost and a proportion of fixed manufacturing overhead allocated based on the normal operating capacity but excluding borrowing cost. Cost is determined on weighted average cost basis. The excise duty in respect of the closing inventory of finished goods in included as part of the finished goods.

Store, spare parts, Packing Material etc.: cost is determined on FIFO basis.

Inter divisional transfers are valued at works/factory costs of the transferor unit/division, plus transport and other charges.

8) Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are not recognized.

9) Taxes on Income:

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws) is recognized as on asset by way of credit to the Profit and Loss Account only if, there is convincing evidence of its realization. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realization.

II. Deferred Tax Provision

Deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognisedonly to the extent there is reasonable certainty that the assets can be realized in future. Deferred tax assets and liabilities are reviewed as at each Balance Sheet date to reassess realization.

10) Foreign Currency Transactions:

(a) Initial recognition:

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Statement of Profit and Loss.

(b) Measurement of foreign currency items at the Balance Sheet date:

Foreign currency monetary items of the Company are restated at the closing exchange rates. Non-monetary items are recorded at the exchange rate prevailing on the date of the transaction. Exchange differences arising out of these translations are recognized in the Statement of Profit and Loss.

11) Employee Benefits: Defined Contribution Plan

Defined Benefit Plan:

Gratuity liability is covered under the Gratuity-cum-Insurance Policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss Account. The amount funded by the Trust administered by the Company under the aforesaid Policy is reduced from the gross obligation under the defined benefit plan to recognize the obligation on a net basis.

Contribution to provident fund etc. is accounted on accrual basis.

A defined contribution plan is a post employment benefit plan under which the Company and employee make monthly contribution to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary. The Company''s contribution is recognized as an expense in the Statement of Profit and Loss during the period in which employee renders the related service.

12) Earning per Share:

Basic and Diluted earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

13) Borrowing Cost:

Borrowing Cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as adjustment to the interest cost. Interest and other borrowing costs attributable to acquisition, construction or production of qualifying assets that takes a substantial period of time to get ready for its intended use or sale are capitalized. All other borrowing costs are expenses in the period they occur.

B. Terms/rights attached to Equity Shares:

The Company has issued only one class of Equity Shares having a par value of '' 10/- per share. Each holder of Equity Shares is entitled to one vote per share.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion to their shareholding.

D. Share reserved for issue under options and contracts / commitments:

The Company has not made any contracts / commitments to issue under option (PY Nil)

A) Working capital loan from a banker are secured by hypothecation of inventories, receivable, other current assets and other tangible fixed assets, pledge of immovable properties and personal guarantee of promoter directors. Secured working capital Loans are repayable on demand and carries interest @ 11.65% p.a.

B) FCNR loan in Foreign currency (US$) to fund working capital requirement from a banker is secured against current assets, fixed assets of the Company and personal guarantee from promoter directors and carries interest @ Libor plus 2.5% .

In absence of any intimation received from vendors the status of their registration under "The Micro, Small and Medium Enterprises Development Act.2006", the Company is unable to comply with disclosures required to be made under said Act. There are no amount is payable to any Small Scale Industrial undertaking.

A. Long term secured loan in foreign currency (US$) granted to Subsidiary Company as part of original project cost and carries Interest rate of 5%

B. Security deposits with related parties are interest free and given against occupation of office premises on rent.

C. Loan to employees is interest free as per Company policy.

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Mar 31, 2016

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2016 NOTE NO.1

COMPANY BACKGROUND

Prima Plastics Limited (“the Company”) is a public Limited Company, incorporated in India under the provisions of the Companies Act, 2013. The Company is engaged in the business of manufacturing of Plastic Moulded Articles.

NOTE NO. 2 SIGNIFICANT ACCOUNTING POLICIES:

1) Basis of Preparation of Financial Statements:

The financial statements are prepared in accordance with generally accepted accounting principles in India under the historical cost convention on an accrual basis. Pursuant to Section 133 of the Companies Act, 2013 (‘The Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.

The preparation of financial statements requires estimates and assumptions to be made that affects the reported amount of assets and liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reported year. Differences between the actual results and estimates are recognized in the year in which the results are known/ materialized.

All the assets and liabilities have been classified as current or non-current as per the company''s normal operating cycle of twelve months and other criteria set out in Schedule III to the Companies Act, 2013.

2) Revenue Recognition:

a) Sales are recognized at the time of transfer of ownership and significant risk of goods to the customer. Service income is recognized when the service is rendered. Sales & Services are accounted for net of Excise Duty, VAT Service tax, returns & claims etc.

b) Sales exclude recovery of charges separately collected from customers like transport, packing etc.

c) The Company adopts the mercantile method in the preparation of the accounts. claims / Refunds not ascertainable with reasonable certainty are accounted for, on final settlement.

d) Government Benefits on account of export sales is estimated and accounted for in the year of export and when there is no significant uncertainty regarding the ultimate collections of export proceeds as applicable.

e) Dividend income is recognized when right to receive dividend is established and there is no uncertainty as to its reliability.

f) Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

3) Tangible and Intangible Fixed Assets

(a) Tangible Fixed Assets

Tangible fixed assets are carried at the cost of acquisition or construction, less accumulated depreciation/accumulated impairment. The cost of fixed assets comprises of its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use.

Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

(b) Intangible Fixed Assets

Intangible fixed assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less accumulated amortization.

Gains/losses arising from retirement or disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.

NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2016

4) Depreciation:

Depreciation on tangible fixed assets is provided using the Straight Line Method based on the useful lives of the assets as estimated by the management and is charged to the Statement of Profit and Loss as per the requirement of Schedule II of the Companies Act, 2013.

In case of certain assets, the Company uses different useful life than those prescribed in Schedule II to the Companies Act, 2013. The useful life has been assessed based on technical advice which considered the nature of the asset, the usage of the asset, expected physical wear and tear, the operating conditions of the asset, anticipated technological changes, manufacturers warranties and maintenance support, etc.

Leasehold land is amortized over the primary period of lease.

Intangible Assets are amortized on a Straight Line basis over the estimated useful economic life.

5) Impairment of Assets:

At Balance Sheet date, an assessment is done to determine whether there is any indication of impairment in the carrying amount of the Company''s assets. If any such indication exists, the asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years are recorded when there is an indication that impairment loss recognized for the asset no longer exists or has been decreased.

6) Investments:

All long term investments are stated at cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary, in the opinion of the management.

Investment in Joint Ventures are held for long term and valued at cost reduced by diminution of permanent nature therein, if any. Current investments are carried at the lower of cost and fair value, determined on a category-wise basis

7) Inventories:

a) Raw Material & Components - at cost using identified on First in first out (FIFO) or net realizable value whichever is lower.

b) Finished Good - at cost using weighted average cost basis or net realizable value whichever is lower. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventory to their respective present location and condition. The excise duty in respect of the closing inventory of finished goods is included as part of the finished goods.

c) Stores, Spare Parts, Packing Materials etc. - at cost using FIFO or at net realizable value whichever is lower.

d) Inter divisional transfers are valued at works/factory costs of the transferor unit/division, plus transport and other charges.

8) Provisions, Contingent Liabilities and Contingent Assets:

The Company creates a provision when there exists a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are not recognized.

9) Taxes on Income:

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

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Mar 31, 2015

1) Basis of Preparation of Financial Statements:

The financial statements of the Company are prepared in accordance with Section 129 of Companies Act, 2013 and accounting principles generally accepted, the Accounting Standards specified under Section 133 of the Companies Act, 2013 and Rule 7 of the Companies (Accounts) Rules, 2014.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure regarding contingent liabilities as at the date of the financial statements and the reported amounts of income and expenses during the year. Examples of such estimates include provision for doubtful debts and advances, obligation under employee's retirement benefits and Income Tax.

The financial statements are prepared on accrual basis under the historical cost convention.

2) Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

3) Revenue Recognition:

Revenue on sales is recognized when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Incomes from services are recognized when services are rendered. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognized when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

4) Fixed Assets:

Fixed assets (other than "Freehold land” where no depreciation is charged) are stated at cost less accumulated depreciation. Cost of acquisition is inclusive of purchase price and any directly attributable cost of bringing the assets to working condition for the intended use. Cenvat Receivable and Value added tax, if any on plant & machinery and moulds have been reduced from the cost of acquisition of the said assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

5) Depreciation:

Depreciation on Fixed Assets is provided on life assigned to each asset in accordance with the Schedule - II of the Companies Act, 2013 except in respect of certain assets where the useful life was determined by technical evaluation.

The carrying amount of the assets as on April 1, 2014 is depreciated over the remaining useful life. Where the useful life of asset has expired, the carrying amount as on April 1,2014 has been charged to the retained earnings as on April 1,2014.

Depreciation for additions to/deductions from, owned assets is calculated pro rata.

6) Impairment of Assets:

As at each Balance Sheet date, the carrying amount of assets is tested for impairment so as to determine the provision for impairment loss and the reversal of impairment loss recognized in previous periods if any.

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years are recorded when there is an indication that impairment loss recognized for the asset no longer exists or has been decreased.

7) Investments:

Long term investments are stated at cost of acquisition. Provision for diminution in value is made only if, in the opinion of management such a decline is other than temporary. Investments in foreign currency are stated at cost by converting at exchange rate prevailing at the time of acquisition / remittance.

Investment in Joint Ventures are held for long term and valued at cost reduced by diminution of permanent nature therein, if any.

8) Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them

NOTE TO FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31,2015

to their respective present location and condition. Cost of raw materials, stores and spares, packing materials, trading and other products are determined on First-In-First-Out (FIFO) basis. The excise duty in respect of the closing inventory of finished goods is included as part of the finished goods. Cost formula used is 'Weighted Average Cost'.

9) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and in respect of which reliable estimate can be made. At each Balance Sheet date, the carrying value of provisions is reviewed and adjusted to reflect the best current estimate.

Contingent liabilities are not recognized but disclosed in the financial statements.

Contingent assets are neither recognized nor disclosed in the financial statements.

10) Taxes on Income:

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws) is recognized as on asset by way of credit to the Profit and Loss Account only if, there is convincing evidence of its realization. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realization.

II. Deferred Tax Provision

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if, there is virtual certainty that sufficient future taxable income will be available, against which they can be realized.

11) Foreign Currency Transactions:

a) Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-a-vis reporting currency between the date of transaction and that of payment / receipts is charged to Profit & Loss Account.

b) Receivables / payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the resultant gain or loss is accounted for in the Profit & Loss Account.

c) Increase / Decrease in foreign currency loan on account of exchange fluctuation are debited / credited to profit and loss account.

12) Employee Benefits:

Defined Contribution Plan

Defined Benefit Plan:

Gratuity liability is covered under the Gratuity-cum-Insurance Policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit and Loss Account. The amount funded by the Trust administered by the Company under the aforesaid Policy is reduced from the gross obligation under the defined benefit plan to recognize the obligation on a net basis. Contribution to provident fund etc. is accounted on accrual basis.

A defined contribution plan is a post employment benefit plan under which the Company and employee make monthly contribution to the Provident Fund Plan equal to a specified percentage of the covered employee's salary. The Company's contribution is recognized as an expense in the Statement of Profit and Loss during the period in which employee renders the related service.

13) Earning per Share:

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also weighted average number of shares that could have been issued upon conversion of all dilutive potential Equity shares.

14) Borrowing Cost:

Borrowing Cost directly attributable to the acquisition & construction of an asset, which take a substantial period of time to get ready for its intended use are capitalized as part of the cost of such asset, until such time assets is substantially ready for its intended use. All other borrowing costs are recognized in the Profit and Loss Accounts in the period in which they are incurred.

15) Current/ Non Current Items:

All Assets and Liabilities are presented as Current or Non Current as per the Company's normal operating cycle and the other criteria set out in Schedule - III to the Companies Act, 2013.

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Mar 31, 2014

1) Basis of preparation of Financial Statements:

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the neared rupees.

2) Use of Estimates:

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period.

3) Revenue Recognition:

Revenue on sales is recognized when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Incomes from services are recognized when services are rendered. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognized when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognized when a reasonable certainty as to its realization exists.

4) Fixed Assets:

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance. Projects under which assets are not ready for their intended use are shown as Capital Work-in-Progress.

5) Impairment of Assets:

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years are recorded when there is an indication that impairment loss recognized for the asset no longer exists or has been decreased.

6) Depreciation:

i) Depreciation is provided on Straight Line method at the rates specified in Schedule XIV of the Companies Act,1956.

ii) Premium on leasehold land and improvement to leasehold premises are being written off over the period of lease.

7) Investments:

Long term investments are stated at cost of acquisition. Provision for diminution in value is made only if, in the opinion of management such a decline is other than temporary. Investments in foreign currency are stated at cost by converting at exchange rate prevailing at the time of acquisition / remittance.

Investment in Joint Ventures are held for long term and valued at cost reduced by diminution of permanent nature therein, if any.

8) Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, packing materials, trading and other products are determined on First-In-First-Out (FIFO) basis. The excise duty in respect of the closing inventory of finished goods is included as part of the finished goods. Cost formula used are ''Weighted Average Cost''.

9) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and in respect of which reliable estimate can be made. At each Balance Sheet date, the carrying value of provisions is reviewed and adjusted to reflect the best current estimate. Contingent liabilities are not recognized but disclosed in the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

10) Taxes on Income:

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws) is recognized as on asset by way of credit to the Statement of Profit and Loss only, if there is convincing evidence of its realization. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realization.

II. Deferred Tax Provision

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if, there is virtual certainty that sufficient future taxable income will be available, against which they can be realized.

11) Foreign Currency Transactions:

a) Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-`-vis reporting currency between the date of transaction and that of payment is charged to Statement of Profit & Loss.

b) Receivables / payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the resultant gain or loss is accounted for in the Statement of Profit & Loss.

c) Increase / Decrease in foreign currency loan on account of exchange fluctuation are debited / credited to Statement of Profit & Loss.

12) Employee Benefits:

Defined Contribution Plan

Defined Benefit Plan:

Gratuity liability is covered under the Gratuity-cum-Insurance Policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Statement of Profit & Loss. The amount funded by the Trust administered by the Company under the aforesaid policy is reduced from the gross obligation under the defined benefit plan to recognize the obligation on a net basis.

Contribution to provident fund etc. is accounted on accrual basis.

A defined contribution plan is a post employment benefit plan under which the Company and employee make monthly contribution to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary. The Company''s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which employee renders the related service.

13) Earning Per Share:

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also weighted average number of shares that could have been issued upon conversion of all dilutive potential equity shares.

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Mar 31, 2013

1) Accounting Convention:

The accounts have been prepared in accordance with the historical cost convention (except for specifically excluded treatment of accounts referred to in B 16(a) under accrual basis of accounting as per Indian GAAP. Accounts and disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncements of ICAI, provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.

Preparation of financial statements in conformity with generally accepted accounting principles, requires estimates and assumption to be made, that affect reported amounts of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

2) Revenue Recognition:

Revenue on sales is recognized when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Incomes from services are recognised when services are rendered. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognized when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realization exists.

3) Fixed Assets:

Fixed assets are recorded at cost of acquisition or construction net of cenvat credit wherever eligible. Cost includes all expenses related to acquisition or construction, including attributable borrowing cost on qualifying assets.

Fixed assets, which are not in use or are held for disposal, are stated at cost less accumulated depreciation or at net realizable value, whichever is lower.

The cost of fixed assets not ready for their intended used before such days are disclosed under Capital Work-in-Progress.

Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date are disclosed under Long-Term Loans and Advances.

4) Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date, if there is an indication of impairment based on the internal and external factors.

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years are recorded when there is an indication that impairment loss recognized for the asset no longer exists or has been decreased.

5) Depreciation:

i) Depreciation is provided on Straight Line method at the rates specified in Schedule XIV of the Companies Act, 1956. ii) Premium on leasehold land and improvement to leasehold premises are being written off over the period of lease.

6) Investments:

Long term investments are stated at cost of acquisition. Provision for diminution in value is made only if, in the opinion of management such a decline is other than temporary. Investments in foreign currency are stated at cost by converting at exchange rate prevailing at the time of acquisition / remittance.

Investment in Subsidiaries and Joint Ventures are held for long term and valued at cost reduced by diminution of permanent nature therein, if any.

7) Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition. Cost of raw materials, stores and spares, packing materials, trading and other products are determined on First In First Out (FIFO) basis. The excise duty in respect of the closing inventory of finished goods is included as part of the finished goods. Cost formula used are ''Weighted Average Cost''.

8) Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when there is a present obligation as a result of a past event, it is probable that an outflow of economic resources will be required to settle the obligation and in respect of which reliable estimate can be made. At each Balance Sheet date, the carrying value of provisions is reviewed and adjusted to reflect the best current estimate. Contingent liabilities are not recognized but disclosed in the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.

9) Taxes on Income:

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws) is recognized as on asset by way of credit to the Profit and Loss Account only if, there is convincing evidence of its realization. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realization.

II. Deferred Tax Provision

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if, there is virtual certainty that sufficient future taxable income will be available, against which they can be realized.

10) Foreign Currency Transactions:

a) Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-à-vis reporting currency between the date of transaction and that of payment is charged to Profit & Loss Account.

b) Receivables / payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the resultant gain or loss is accounted for in the Profit & Loss Account.

c) Increase / Decrease in foreign currency loan on account of exchange fluctuation are debited / credited to profit and loss account.

11) Employee Benefits: Defined Contribution Plan

Contribution to provident fund etc. is accounted on accrual basis.

Defined Benefit Plan:

Gratuity liability is covered under the Gratuity-cum-Insurance Policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. The amount funded by the Trust administered by the Company under the aforesaid Policy is reduced from the gross obligation under the defined benefit plan to recognize the obligation on a net basis.

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Mar 31, 2012

1) Accounting Convention:

The accounts have been prepared in accordance with the historical cost convention (except for specifically excluded treatment of accounts referred to in B 16(a) under accrual basis of accounting as per Indian GAAP Accounts and disclosures thereon comply with the Accounting Standards specified in Companies (Accounting Standard) Rules, other pronouncements of ICA!. provisions of the Companies Act, 1956 and guidelines issued by SEBI as applicable.

Preparation of financial statements in conformity with generally accepted accounting principles, requires estimates and assumption to be made, that affect reported amounts of assets and liabilities on the date of financial statements and reported amount of revenues and expenses during the reported period. Actual results could differ from these estimates and differences between the actual results and estimates are recognized in the period in which results are known / materialized.

2) Revenue Recognition:

Revenue on sales is recognized when risk and rewards of ownership of products are passed on to customers, which are generally on dispatch of goods. Incomes from services are recognised when services are rendered. Sales are net of discounts, sales tax and returns; excise duty collected on sales is shown by way of deduction from sales. Dividend income is recognized when right to receive dividend is established and there is no uncertainty as to its reliability. Revenue in respect of other income is recognised when a reasonable certainty as to its realization exists.

3) Fixed Assets:

Fixed assets are recorded at cost of acquisition or construction net of Cenvat credit wherever eligible. Cost includes all expenses related to acquisition or construction, including attributable borrowing cost on qualifying assets.

Fixed assets, which are not in use or are held for disposal, are stated at cost less accumulated depreciation or at net realizable value, whichever is lower.

The cost of fixed assets not ready for their intended used before such days are disclosed under Capital Work-in-Progress.

Advances paid towards the acquisition of Fixed Assets outstanding at each Balance Cheet date are disclosed under Long-Term Loans and Advances.

4) Impairment of Assets:

The carrying amounts of assets are reviewed at each balance sheet date, if there is an indication of impairment based on the internal and external factors.

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years in recorded when there is an indication that impairment loss recognized for the asset no longer exists or has been decreased.

5) Expenditure during Construction and Expenditure on New Projects:

In case of new Projects and in case of substantial modernization / Expansion at existing units of the Company, all pre-operating expenditure specifically for the project, incurred up to the date of installation, is capitalized and added pro-rata to the cost of fixed assets.

6) Depreciation:

i) Depreciation is provided on Straight Line method at the rates specified in Schedule XIV of the Companies Act, 1956.

ii) Premium on leasehold land and improvement to leasehold premises are being written off over the period of lease.

7) Investments:

Long term investments are stated at cost of acquisition. Provision for diminution in value, is made only if, in the opinion of management such a decline is other than temporary. Investments in foreign currency are stated at cost by converting at exchange rate prevailing at the time of acquisition / remittance.

Investment in Subsidiaries and Joint Ventures are held for long term and valued at cost reduced by diminution of permanent nature therein, if any.

No profit or losses of subsidiaries are accounted for.

8) Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence, if any. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in brining them to their respective present location and condition. Cost of raw materials, stores and spares, packing materials, trading and other products are determined on First In First Out basis (FIFO).

Scraps are valued at net realizable value.

9) Provisions, 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. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

10) Taxes on Income:

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws), is recognized as on asset by way of credit to the Profit and Loss Account only if there is convincing evidence of its realization. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realization.

II. Deferred Tax Provision

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty that sufficient future taxable income will be available, against which they can be realized.

11) Foreign Currency Transactions:

a) Transactions in foreign currencies are recognized at rate of overseas currency ruling on the date of transactions. Gain / Loss arising on account of rise or fall in overseas currencies vis-a-vis reporting currency between the date of transaction and that of payment is charged to Profit & Loss Account.

b) Receivables / payables (excluding for fixed assets) in foreign currencies are translated at the exchange rate ruling at the year end date and the resultant gain or loss, is accounted for in the Profit & Loss Account.

c) Increase / decrease in foreign currency loan on account of exchange fluctuation are debited / credited to Profit and Loss Account.

d) Impact of exchange fluctuation is separately disclosed in notes to accounts.

12) Employee Benefits:

Defined Contribution Plan

Contribution to provident fund and ESIC is accounted on accrual basis.

Defined Benefit Plan:

Gratuity liability is covered under the Gratuity-cum-lnsurance Policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. The amount funded by the Trust administered by the Company under the aforesaid Policy, is reduced from the gross obligation under the defined benefit plan, to recognize the obligation on a net basis.

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Mar 31, 2010

1. Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the applicable accounting standards and other relevant provisions of the Company Act, 1956.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principle (GAAP) requires estimates and assumptions that affect the reported amounts of income and expenses during the reported period and the reported amount of assets and liabilities on the date of the financial statements. Differences, if any, between actual results and estimates is recognized in the period in which the results are known.

3. Revenue Recognition

i) Revenue from sale of products is recognized when all the significant risks and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods. The sales(Net) for the year are net of inter-unit transactions, excise duty and Value Added Tax. Accordingly, the purchases are also given net of inter-unit transactions.

ii) Revenue/Income and Cost/Expenditure are generally accounted on accruals, as they are earned or incurred, except in case of significant uncertainties.

iii) Liability for Excise duty and Custom duty payable on stock in bonded warehouse at the year-end is provided for.

iv) Dividend income is recognized when the right to receive the same is established.

v) Interest income is accrued over the period of loan/deposit/investment.

4. Fixed Assets

Fixed Assets are stated at cost (including other expenses related to acquisition and installation) less accumulated depreciation / amortization.

5. Impairment of Assets

The carrying amount of assets is reviewed at each Balance Sheet date if there is any indication of impairment based on internal and external factors.

An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years, is recorded when there is an indication that impairment losses recognized for the asset no longer exists or has decreased.

6. Investments

Long -term investments are stated at cost. Provision is made for diminution, which are other than temporary, in the value of Investments.

7. Depreciation

i) Depreciation on Fixed Assets has been provided on straight-line method at the rates and in the manner specified in schedule XIV to the Companies Act, 1956, except in the case of leasehold land, which is amortised our the remaining period of lease.

ii) Assets like mobile phones, telephone instruments, etc. are fully write off in the year of purchase / acquisition.

8. Valuation of Inventories

Inventories are valued at lower of cost and estimated net realizable value except stores and spares which are valued at cost. The excise duty in respect of the closing inventory of finished goods is included as part of the finished goods. The cost formula used for determination cost is on the basis of First in First out.

9. Taxes on Income

I. Current Tax Provision

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting year and in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) eligible for set-off in subsequent years (as per tax laws), is recognized as on asset by way ot credit to the Profit and Loss Account only if there is convincing evidence of its realization. At each Balance Sheet date, the carrying amount of MAT Credit Entitlement receivable is reviewed to reassure realization.

II. Deferred Tax Provision

Deferred tax asset or liability is recognized for timing differences between the profit as per financial statements and the profit offered for income tax, based on tax rates that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only if there is virtual certainty that sufficient future taxable income will be available, against which they can be realized.

10. Foreign Currency Transactions

The reporting currency of the Company is Indian Rupee.

(i) Foreign currency transactions during the year are recorded at the rates of exchange prevailing at the date of transaction-. Exchange gains or losses realized and arising due to translation of the foreign currency monetary items outstanding at the year end are accounted in the profit and loss account.

(ii) Forward Exchange Contracts: In case of transactions covered by forward exchange contracts, which are not intended for trading or speculation purposes, premium or discounts are amortized as expense or income over the life of the contract. Exchange difference on such contracts is recognized in the profit and loss account in the year in which the exchange rate changes. Profit or loss arising on cancellation or renewal of such forward exchange contracts are recognized as income or as expense for the year.

11. Employee Benefits

Short Term Employee Benefits: All employee benefits payable within twelve months of rendering the service are recognized in the period in which the employee renders the related service.

Post Employment / Retirement Benefits: Contribution to Defined Contribution Plans such as Provident Fund etc., are charged to the Profit and Loss Account as incurred.

Defined Benefit Plan:

Gratuity: Gratuity liability is covered under the Gratuity-cum-lnsurance Policy of Life Insurance Corporation of India (LIC). The present value of the obligation is determined based on an actuarial valuation. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account. The amount funded by the Trust administered by the Company under the aforesaid Policy, is reduced from the gross obligation under the defined benefit plan, to recognize the obligation on a net basis.

12. Provisions, 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. Contingent Liabilities are not recognized but are disclosed, while Contingent Assets are neither recognized nor disclosed, in the financial statements.

13. Segment Reporting

The company operates in two segments namely: I- Moulded Furniture II - Aluminium Composite Sheet. Segments have been identified and reported taking into account the nature of the product, the differential risk and return of the segment, the organizational structure and the internal financial reporting system.