Notes to Accounts of Radha Madhav Corporation Ltd.

Mar 31, 2023

(i) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity share having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend.

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

(ii) Nature and purpose of each reserve within Other equity Capital Reserve

Represented forfeited warrant application money being non subscribing/ conversion of warrant in to equity share with in terms of allotment.

Securities premium account

Where company issued shares at a premium, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to a "securities premium account" as per the provisions of applicable Companies Act.

Retained earning and dividend on equity shares:

This represent the surplus/ (deficit) of the profit or loss. The amount that can be distributed by the Company to its equity shareholders is determined considering the requirements of the Companies Act, 2013. Thus, the amount reported above are not distributable in entirety.

(i) The provision for employee benefits includes annual leave and vested long service leave entitlements accrued, gratuity and ex-gratia/Bonus. The decrease in the carrying amount of the provision for the current year results from benefits being paid/ adjusted in the current year.

29.2 Financial risk management

The company''s principal financial liablities comprrises borrowings, trade and other payable. The main purpouse of these financial liabilities is to financce the company''soperation. The company''s principal assets include loan, trade and other receivable and cash and cash equivalents that are derived directky from its opetation The company is exposed to credit risk and liquidity risk. The company''s senior mamngment oversees the management of these riks:

A.Credit risk management

The company is exposed to credit risk from its operating activities (Primariliy for trade receivable). To manage credit risk the company follow a policy of providing 0-90 days credit on the basis of natuer of customers. The credit limit policy is established considering the current economic trends of the industry and geographies in which company is operating

However, the trade receivable are monitired on periodic basis for assessing any significant risk of non-recoverebility of dues and provision is created accordingly.

30 Liquidity risk management

Liquidity riks isthe riskthatthe companywill not be able to settle or meet the obligation ontimeor ata reasonable price. This risk arisesfrom obligation on account ofthe company''s financial liabilities such as borrowings , trade payable etc.

The company''s corporate finance department is responsible for liquidity and funding management and settlemt. In addition processs and policies related to such riskare overssen by senior management. Management monitor the company''s net liquuidity posstion throgh rolling forecast on the basis of expected cashflows.

The tabale below summarise the maturity profile of the company''s financial liabilties based on contractulal undicounted payment at each reporting date: ii)

All dues of Assets Reconstruction Company, Recalled/ Current maturities of long-term debt and Recalled Short Term borrowing from bank are

Secured against mortgage of entire Land & Building and Hypothecation of entire Plant & Machinery and other Fixed assets of the company and also Secured by Hypothecation of entire Inventories and Book Debts and other current assets of the company This loan is also secured by personal guarantee of promoter directors (Repayable with Interest: 16.50 % & 15.60 % )

The Company is undergoing substantial financial stress since 2nd half of the immediately preceding Financial Year. The Company had entered into a financial arrangement with ARC. Because of lack of funds and sale of Uttaranchal Plant not materialized, the conditions of repayment could not be fulfilled and the amounts could not be repaid in time. The ARC has issued a legal notice to the Company which is being under negotiation and the management is hopeful of working out an amicable solution. In view of this, no provision of any penal interest and other charges have been made in the accounts.

31. Capital Managment A. Risk Management

The company''s objectives when managing capital are to

''-Safeguard it''s ability to continue as going concern, so that it can countinue to provide return for shareholder and benefits for other shareholder and ''-maintain an optimal capital structuer to reduce the cost of capital.

The company monitors its capital by using gearing ratio, which is net debt dividend by total equity. Net debt include non-current and current borrowings net of cash and cash equivelants and total equity comprises of equity share capital, security premium, general reserv, other comprehansive income and retained earnings

Note: 40

a. The company is in the process of obtaining confirmation from parties, and reconciliation differences, if any, in payable and receivables will be adjusted in the books. On ramping up of packaging business, company is hopeful of recovering the book debts.

b. Previous year figures have been regrouped & rearranged wherever necessary.

Note: 41

The Company is undergoing substantial financial stress since 2nd half of the immediately preceding Financial Year. The Company is taking active steps to monetize it’s assets and is in discussions with many parties to sell off it’s marketing business. The management of the Company is evaluating various options, including starting a new line of business, restructuring it’s liabilities and recommencement of it’s operations, reducing the promoters stake by way of selling of their stake to a strategic partner or with further equity infusion which are not wholly within the control of the Company. In view of all the actions that are currently under way, these financial statements have been prepared on the basis that the Company is a going concern.

Note: 42 CSR Expenditure

(a) Gross amount required to be spent by the company during the year as per Section 135 of the Companies Act, 2013 read with schedule VII: INR 1.99 millions (Previous Year 1.34)

(b) Amount spent during the year on

(i) Construction/acquisition of any asset : Nil

(ii) On purposes other than (i) above : INR 3.90 millions -2019

43. Approval of financial statements

The financial statements were approved for issue by the board of directors on 08.12.2023

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Mar 31, 2018

1 CORPORATE INFORMATION

Radha Madhav Corporation Limited (RMCL) has began trading and distribution of various products in various category like Clothing, Fashion products, Wellness, Cosmetics, Electronics etc. through portal (www.rmcluniverse.com )or otherwise.

The company is also engaged in manufacture of variants of multilayered and functional films, which find major application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of internationally accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifth one of them is in Rudrapur, Uttaranchal. The basic infrastructure of the company is accredited with international quality.

2 STATEMENT OF COMPLIANCE

The standalone financial statements have been prepared in accordance with Ind ASs notified under the Companies (Indian Accounting Standards) Rules, 2015.

Upto the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes Standards notified under the Companies (Accounting Standards) Rules, 2006. These are the Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer Note 3.18 for the details of first-time adoption exemptions availed by the Company.

(i) Rights, preferences and restrictions attached to equity shares

The Company has one class of equity share having a par value of Rs. 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend.

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

There are no shareholders holding more than 5% of the aggregate equity shares of the Company except those mentioned above.

(iv) No shares are issued other than for cash during last five years.

(v) No shares are reserved for issue under options

(ii) Nature and purpose of each reserve within Other equity Capital Reserve

Represented forfeited warrant application money being non subscribing/conversion of warrant in to equity share with in terms of allotment.

Securities premium account

Where company issued shares at a premium, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to a "securities premium account" as per the provisions of applicable Companies Act.

Retained earning and dividend on equity shares:

This represent the surplus/ (deficit) of the profit or loss. The amount that can be distributed by the Company to its equity shareholders is determined considering the requirements of the Companies Act, 2013. Thus, the amount reported above are not distributable in entirety.

(i) The provision for employee benefits includes annual leave and vested long service leave entitlements accrued, gratuity and ex-gratia. The decrease in the carrying amount of the provision for the current year results from benefits being paid/ adjusted in the current year.

The Company has not received any intimation from "suppliers" regarding their status under Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard could not be provided.

These financial statements for the year ended March 31, 2018 are the first financial statements prepared by the Company in accordance with Ind AS. The Company prepared its financial statements for periods up to and including the year ended March 31, 2016, in accordance with statutory reporting requirement in India immediately before adopting Ind AS (''previous GAAP'').

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending as on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 1, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Ind AS financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

Note: Total comprehensive income was not reported under previous GAAP. Therefore the reconciliation starts with profit under previous GAAP.

a & b Leasehold land in considered as property, plant and equipments and the present value of the lease payment is considered as the cost of the asset and no depreciation has not been provided for in Profit and loss account for the period.

c. The Actuarial gain/(loss) has been reclassified under other comprehensive income under Ind AS.

3. FINANCIAL RISK MANAGEMENT

The company''s principal financial liabilities comprises borrowings, trade and other payable. The main purpose of these financial liabilities is to finance the company''s operation. The company''s principal assets include loan, trade and other receivable and cash and cash equivalents that are derived directly from its operation

The company is exposed to credit risk and liquidity risk. The company''s senior management oversees the management of these riks:

A. Credit risk management

The company is exposed to credit risk from its operating activities (Primarily for trade receivable). To manage credit risk the company follow a policy of providing 0-90 days credit on the basis of nature of customers. The credit limit policy is established considering the current economic trends of the industry and geographies in which company is operating

However, the trade receivable are monitored on periodic basis for assessing any significant risk of non-recoverebility of dues and provision is created accordingly.

NOTE 4 : LIQUIDITY RISK MANAGEMENT

Liquidity risks is the risk that the company will not be able to settle or meet the obligation on time or at a reasonable price. This risk arises from obligation on account of the company''s financial liabilities such as borrowings, trade payable etc.

The company''s corporate finance department is responsible for liquidity and funding management and settlement. In addition process and policies related to such risk are overseen by senior management. Management monitor the company''s net liquidity position through rolling forecast on the basis of expected cashflows.

The table below summarise the maturity profile of the company''s financial liabilities based on contractual undiscounted payment at each reporting date:

ii) All dues of Assets Reconstruction Company, Recalled/ Current maturities of long-term debt and Recalled Short Term borrowing from bank are secured against mortgage of entire Land & Building and Hypothecation of entire Plant & Machinery and other Fixed assets of the company and also Secured by Hypothecation of entire Inventories and Book Debts and other current assets of the company

This loan is also secured by personal guarantee of promoter directors

(Repayable with Interest: 16.50 % & 15.60 % )

A. Risk Management

The company''s objectives when managing capital are to

-Safeguard it''s ability to continue as going concern, so that it can continue to provide return for shareholder and benefits for other shareholder and

-maintain an optimal capital structure to reduce the cost of capital.

The company monitors its capital by using gearing ratio, which is net debt dividend by total equity. Net debt include non-current and current borrowings net of cash and cash equivalents and total equity comprises of equity share capital, security premium, general reserve, other comprehensive income and retained earnings.

The Company operates defined contribution Gratuity benefit plans for all qualifying employees of its Company. The assets of the plans are held separately from those of the Company in funds managed by insurance company. Where employees leave the plans prior to full vesting of the contributions, the contributions payable by the Company are reduced by the amount of forfeited contributions.

Gratuity Benefit is payable to employees as per the provisions of Payment of Gratuity Act, 1972 and its later amendments.

All employees are entitled to Gratuity Benefits on exit from service due to retirement, resignation or death. There is a vesting period of 5 years on exits due to retirement or resignation.

The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at March 31, 2018. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

NOTE : 5 - SEGMENT REPORTING

The Company has identified business segment as its primary segment and geographic segments as its secondary segment.

Company has identified two reportable segment viz sales of own manufactured products (sub-classified in to end user & through channel partners) and marketing & Trading. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

Geographical revenues are allocated based on the location of the customer. Geographical segments of the company are India and Others.

The Company has not paid any remuneration to any director during the year under consideration.

NOTE: 6

a. The company is in the process of obtaining confirmation from parties, and reconciliation differences, if any, in payable and receivables will be adjusted in the books. On ramping up of packaging business, company is hopeful of recovering the book debts.

b. Previous year figures have been regrouped & rearranged wherever necessary.

NOTE: 7 GOING CONCERN

The company''s net worth has been fully eroded due to continuous losses. However, the accounts have been prepared on the basis that the company is a going concern Management is of the view that there is no uncertainty about continuous operation of the Company in foreseeable future. Following measures are taken by the company to ensure continuous operations:

1. Company has begun Online E-Commerce business, which is profitable, and is evident from the results.

2. Company has also made profit during the last few year.

3. Management has infused long-term capital in the company on various occasions and shall thrive to do so in future.

4. Management is also planning gradually to modify its business plan by appointing franchise there by reducing working capital intensive dependence.

5. The Company would be able to continue its operation in the foreseeable future through various restructuring and deleveraging measures.

6. Company is in retail business which is inherently slow start business. Efforts needed to break-even generally takes initial few years. Company is satisfied on its own performance and shall thrive to do better in future.

The accounts do not include any adjustment relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

NOTE: 8 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on 30-05-2018.

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Mar 31, 2016

Note: 1

Segment Reporting

The Company has identified business segment as its primary segment and geographic segments as its secondary segment. The company has started its Trading business, in view of AS17 segment reporting issued by ICAI, the company has identified Trading Activity as additional Primary Segment.

Company has identified two reportable segment viz sales of own manufactured products (sub classified in to end user & through channel partners) and marketing and Trading. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

Geographical revenues are allocated based on the location of the customer. Geographical segments of the company are India and Others.

Note: 2

Going Concern

The company’s net worth has been fully eroded due to continuous losses. However, the accounts have been prepared on the basis that the company is a going concern Management is of the view that there is no uncertainty about continuous operation of the Company in foreseeable future. Following measures are taken by the company to ensure continuous operations:

1. Company has begun Online E-Commerce business, which is profitable, and is evident from the 2015 & 2016 results.

2. Company has also made profit during the year ended 31.03.2015 & 31.03.2016.

3. Management has induced long-term capital in the company on various occasions and shall thrive to do so in future.

4. Management is also planning gradually to modify its business plan by appointing franchise there by reducing working capital intensive dependence.

5. The Company would be able to continue its operation in the foreseeable future through various restructuring and deleveraging measures.

6. Company is in retail business which is inherently slow start business. Efforts needed to break-even generally takes initial few years. Company is satisfied on its own performance and shall thrive to do better in future.

The accounts do not include any adjustment relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

Note: 3

a. The company is in the process of obtaining confirmation from parties, and reconciliation differences, if any, in payable and receivables will be adjusted in the books. On ramping up of packaging business, company is hopeful of recovering the book debts.

b. Previous year figures have been regrouped & rearranged wherever necessary.

Note : 4

Radha Madhav Corporation Limited (RMCL) has began trading and distribution of various products in various category like Clothing, Fashion products, Wellness, Cosmetics, Electronics etc. through portal (www.rmcluniverse.com )or otherwise.

The company is also engaged in manufacture of variants of multilayered and functional films, which find major application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of internationally accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifth one of them is in Rudrapur, Uttaranchal, enjoying tax concessions. The basic infrastructure of the company is accredited with international quality.

The accompanying notes 1 to 42 are an integral part of these financial statements

As per our attached report of even date

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Mar 31, 2015

Note: 1 Segment Reporting

The Company has identified business segment as its primary segment and geographic segments as its secondary segment. During the year company has started its marketing and Trading business, in view of AS17 segment reporting issued by ICAI, the company has identified Trading Activity as additional Primary Segment.

Company has identified two reportable segment viz sales of own manufactured products (sub-classified in to end user & through channel partners) and marketing and Trading. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

Geographical revenues are allocated based on the location of the customer. Geographical segments of the company are India and Others.

Note: 2 Going Concern

The company's net worth has been fully eroded due to continuous losses. However, the accounts have been prepared on the basis that the company is a going concern. Management is of the view that there is no uncertainty about continuous operation of the Company in foreseeable future. Following measures are taken by the company to ensure continuous operations:

1. Company has begun Online E-Commerce business, which is profitable, and is evident from the 2015 result.

2. Company has also made profit during the year ended 31.03.2015.

3. Management has induced long-term capital in the company on various occasions and shall thrive to do so in future.

4. Management is also planning gradually to modify its business plan by appointing franchise there by reducing working capital intensive dependence.

5. The Company would be able to continue its operation in the foreseeable future through various restructuring and deleveraging measures

The accounts do not include any adjustment relating to recoverability and classification of recorded asset amounts or the amounts and classification of liabilities.

Note: 3

a. The company is in the process of obtaining confirmation from parties, and reconciliation differences, if any, in payable and receivables will be provided in the books. On ramping up of packaging business, company is hopeful of recovering the book debts.

b. Previous year figures have been regrouped & rearranged wherever necessary.

Note : 4

Radha Madhav Corporation Limited (RMCL) has began trading and distribution of various products in various category like Clothing, Fashion Products, Wellness, Cosmetics, Electronics etc. through or otherwise www.rmcluniverse.com.

The company is also engaged in manufacture of variants of multilayered and functional films, which find major application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of internationally accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifth one of them is in Rudrapur, Uttaranchal, enjoying tax concessions. The basic infrastructure of the company is accredited with international quality certification such as 9001:2008 (QMS) / 14001: 2004 (EMS) / 18001: 2007 (OHSAS) / 22001: 2005(FSMS) & BRC Accredited Company.

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Mar 31, 2013

Note- 1

Right, Preferences and restrictions attached to shares

Equity shares

The company has one class of equity shares having a par value of Rs. 10 each. Each shareholder is eligible for one vote per share held.

The dividend as and when proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing An- nual General meeting, except in case of interim dividend.

In the event of Liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribu- tion of all preferential amounts, in proportion to their share- holding.

Note : 2

Radha Madhav Corporation Limited (RMCL) is engaged in manufacture of variants of mul- tilayered and functional films, which find major application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of international accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifth one of them is in Rudrapur, Uttaranchal, enjoying tax con- cessions. The basic infrastructure of the company is accredited with international qual- ity certification such as 9001:2008 (QMS) / 14001: 2004 (EMS) / 18001: 2007 (OHSAS) / 22001: 2005(FSMS) & BRC Accredited Company.

Note : 3

Related Party Relationships

(a) Enterprises Owned by Directors or Major Share Holders

Sr. No. Name of the Company/Firm

1 Abhishek Packaging Industries

2 Maharastra Polycane Industries

3 Radha Madhav Research and Trade Pvt. Ltd.

4 Print Rite

5 Siddharth Plastic Industries

6 Plastic Corporation

7 Mamta Steel

8 Mehsana Steel Suppliers

9 Mahavir Steel Suppliers

10 Abias Export Pvt. Ltd.

11 Swati Packaging

12 Radha Krishna Industries

13 Radha Madhav Residency

14 Radha Madhav Holdings Pvt. Ltd.

15 Shree Dagruseth Infracon

(b) Key Management Personnel

* Mr. Mitesh Agrawal

* Mr. Abhishek Agrawal

(c) Persons having significant influence

* Mr. Anil Agrawal

Note: In respect of above parties, there is no provision for doubtful debts as on 31st March, 2013 and no amount has been written off or written back during the year in respect of debts due from/to them.

Note: 4 Going Concern

The company's net worth has been fully eroded due to continuous losses. However, the ac- counts have been prepared on the basis that the company is a going concern. Management is of the view that there are no uncertainties about continuous operation of the Company in foreseeable future on account following measures taken by the Company;

i) T he Management has also taken various steps to infuse long term capital in the company through various sources.

ii) The management is also planning to gradually modify its business plan by appoint ing franchisees and thereby reducing working capital intensiveness.

iii) and also with various restructuring measures the Company would be able to con- tinue its operation in the foreseeable future.

The accounts do not include any adjustment relating to recoverability and classification of re- corded asset amounts or the amounts and classification of liabilities.

Note: 5

Contingent Liability and Commitments

(Rs. In Millions)

Particulars Mar-2013 Jun-2012

Contingent Liability

a) Guarantees given by Banks 24.80 38.25

b) Disputed Liability of Central Excise Duty. Dispute pending with 15.36 15.36 Customs Excise & Service Tax Appellate Tribunal, Ahmadabad

c) Disputed Liability of Income Tax. Dispute pending with dis- 0.91 0.91 puted is pending before commissioner of Income Tax (Appeals).

d) Duty liability with respect to capital goods imported under 180.24 180.25 EPCG Scheme.(against balance export obligation) (This figure does not includes interest @ 24% per annum, which is payable in case of defaults, from the date of import)

e) Suppliers Claim against the company not acknowledged as debt 9.81 9.81 Commitments

a) Estimated amount of contract remaining to be executed on - 0.14 capital Account and not provided for (net of Advances)

Note: 6

Impairment of Assets "Accounting Standard 28"

The company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its assets. The exercise has not reveals any impairment in any fixed assets of the company.

Note: 7

a. Previous year figures have been regrouped & rearranged wherever necessary.

b. Previous year figures are not comparable with current year figure, in view of the fact that the current year is of 9 months period as against previous year of 15 months period.

Note: 8

Segment Reporting

The Company has identified business (sales channel) as its primary segment and geographic segments as its secondary segment. Company has identified two reportable segment viz sales to end user, sales to channel partners and has reported the figures as per AS 17 segment report- ing issued by the ICAI. Segments have been identified and reported taking into account nature of customer and distribution channel, the differing risks and returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies for segment reporting.

a) Revenue and expenses have been identified to a segment on the basis of relationship to operative activities of the segment. Revenue and expenses which relate to enter- prise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallcable".

b) Assets and liabilities that are directly attributable or allocable to segments are dis- closed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

c) Geographical revenues are allocated based on the location of the customer. Geo- graphical segments of the company are India and Others.

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Jun 30, 2012

Note : 1

Radha Madhav Corporation Limited (RMCL) is engaged in manufacture of variants of multilayered and functional films, which find major Application in primary as well secondary packaging solutions in food, dairy and pharmaceutical segments. The company is capable of producing multilayer cast and blown barrier films of inter National accepted standards.

At present, RMCL has 5 independent production units, 4 of them are located in the union territory of Daman and the fifith one of them is in Rudrapur, Utaranchal, enjoying tax concessions. The basic infrastructure of the company is accredited with international quality certfication such as 9001:2008 (QMS) / 14001: 2004 (EMS) / 18001: 2007 (OHSAS) / 22001: 2005(FSMS) & BRC Accredited Company.

Note : 2

Related Party Relationships

(a) Enterprises Owned by Directors or Major Share Holders

Sr. No. Name of the Company/Firm

1 Abhishek Packaging Industries

2 Maharastra Polycane Industries

3 Radha Madhav Research and Trade Ltd.

4 Print Rite

5 Siddharth Plastic Industries

6 Plastic Corporation

7 Mamta Steel

8 Mehsana Steel Suppliers

9 Mahavir Steel Suppliers

10 Abias Export Pvt. Ltd.

11 Swat Packaging

12 Radha Krishna Industries

13 Radha Madhav Residency

14 Radha Madhav Holdings Pvt. Ltd.

15 Shree Dagruseth Infracon

(b) Key Management Personnel

- Mr. Mitesh Agarwal

- Mr. Abhishek Agarwal

(c) Persons having significant influence

- Mr. Anil Agarwal

Note: 3

Going Concern

The company's net worth has been fully eroded due to continuous losses. However, the ac- counts have been prepared on the basis that the company is a going concern. Management is of the view that there are no uncertainties about continuous operation of the Company in foreseeable future on account following measures taken by the Company;

i) The Management has also taken various steps to infuse long term capital in the company through various sources.

ii) The management is also planning to gradually modify its business plan by appoint- ing franchisees and thereby reducing working capital intensiveness.

iii) and also with various restructuring measures the Company would be able to continue its operation in the foreseeable future.

The accounts do not include any adjustment relating to recoverability and classification of re- corded asset amounts or the amounts and classification of liabilities.

Note: 4

Contingent Liability and Commitments

(Rs. In Millions) Particulars Jun-2012 Mar-2011

Contingent Liability

a) Guarantees given by Banks 38.25 48.27

b) Disputed Liability of Central Excise Duty. Dispute pending 15.36 15.36 with Customs Excise & Service Tax Appellate Tribunal, Ahmadabad

c) Disputed Liability of Income Tax. Dispute pending with dis- 0.91 -- puted is pending before commissioner of Income Tax (Appeals).

d) Duty liability with respect to capital goods imported under 180.25 182.32 EPCG Scheme.(against balance export obligation)

e) Claim against the company not acknowledged as debt 9.81 9.81 Commitments

a) Estimated amount of contract remaining to be executed on 0.14 0.14 capital Account and not provided for (net of Advances)

Note: 5

Impairment of Assets "Accounting Standard 28"

The company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its assets. The exercise has not reveals any impairment in any fixed assets of the company.

Note: 6

Previous year figures have been regrouped & rearranged wherever necessary.

Note: 7

Segment Reporting

The Company has identified business (sales channel) as its primary segment and geographic segments as its secondary segment. During the period the Company has identified two report- able segment viz sales to end user, sales to channel partners and has reported the figures as per AS 17 segment Reporting issued by the ICAI for the current period only and has not given any comparative figure for preceding period as it is impracticable. This is as per the provision of AS.17 segment Reporting. Segments have been identified and reported taking into account na- ture of customer and distribution channel, the differing risks and returns and the internal busi- ness Reporting systems. The accounting policies adopted for segment Reporting are in line with the accounting policy of the company with following Additional policies for segment Reporting.

a) Revenue and expenses have been identified to a segment on the basis of relation- ship to operative activites of the segment. Revenue and expenses which relate to enterprise as a whole and are not allocable to a segment on reasonable basis have been disclosed as "Unallcable".

b) Assets and liabilities that are directly atributable or allocable to segments are dis- closed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

c) Geographical revenues are allocated based on the Location of the customer. Geo- graphical segments of the company are India and Others.

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Mar 31, 2010

1. The Company has not received any intimation form "suppliers" regarding their status under Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosure requirements in this regard as per Schedule VI of the Companies Act, 1956 could not be provided.

2. Contingent Liability not provided for

Rs. (in 000) Rs. (in 000)

Particulars 31-03-2010 31-03-2009

a) Guarantees given by Banks 31786 33959

b) Estimated amount of contract remaining to be executed on capital 2207 1878 Account and not provided for (net of Advances)

c) Disputed Liability of Central Excise Duty. Dispute pending with 15359 16248 Customs Excise & Service Tax Appellate Tribunal, Ahmadabad

d) Duty liability with respect to capital goods imported under 118917 125156 EPCG Scheme.(against balance export obligation)

3. Impairment of Assets "Accounting Standard 28"

The company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its assets. The exercise has not reveals any impairment in any fixed assets of the company.

4. The company has a single segment namely "Flexible Packaging" therefore the companys business does not fall under different business segments as defined by AS-17 "Segmental Reporting" issued by ICAI.

5. Previous years figures have been regrouped & rearranged wherever necessary.