Notes to Accounts of Raj Packaging Industries Ltd.

Mar 31, 2024

1.15 PROVISIONS AND CONTINGENCIES

A provision is recognised when there is a present legal or constructive obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, and in respect of which a reliable estimate can be made. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than tire unavoidable costs of meeting the future obligations under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present obligation that may probably not require an outflow of resources or an obligation for which the future outcome cannot be ascertained with reasonable certainty. When there is a possible or a present obligation where tire likelihood of outflow of resources is remote, no provision or disclosure is made.

Provisions for onerous contracts are recognized when the expec ted benefits to be derived by the Company from a contract are lower them tire unavoidable costs of meeting the future obligations under the contract

If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

1.16 CASH AND CASH EQUIVALENTS

Cash and Cash equivalents include cash and Cheque in hand, bank balances, demand deposits with banks and other short-term highly liquid investments that are readily convertible to known amounts of cash & which are subject to an insignificant risk of changes in value where original maturity is three months or less.

1.17 CASH FLOW STATEMENT

Cash flows are reported using the indirect method where by the profit before tax is adjusted for the effect of the transactions of a non-cash nature, any deferrals or accruals of past and future operating cash receipts or payments and items 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.

1.18 BORROWING COST

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as a part of Cost of that assets, during the period till all tire activities necessary to prepare the Qualifying assets for its intended use or sale are complete during the period of time that is required to complete and prepare the assets for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Other borrowing costs are recognized as an expense in the period in which they are incurred.

1.19 EARNINGS PER SHARE

Basic EPS is arrived at based on net profit after tax available to equity shareholders to the weighted average number of equity shares outstanding during the year.

The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless impact is anti-dilutive.

1.20 SEGMENT REPORTING

Operating segments are reported in a manner consistent with tire internal reporting provided to Chief Operating Decision Maker (CODM). The Company has identified its Managing Director as CODM which assesses tire operational performance and position of the Company and makes strategic decisions.

1.21 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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

30 DISCLOSURE PURSUANT TO IND AS -19 "EMPLOYEE BENEFITS"

i) C iratuity: In accordance with the applicable law''s, the Company provides for gratuity, a defined benefit retirement plan (’The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date and the Company makes annual contribution to the gratuity fund administered by life Insurance Companies under their respective Group Gratuity Schemes.

The disclosure in respect of the defined Gratuity Plan are given below:

Notes to the Ind-AS financial Statements for the year ended March 31. 2024 (?” in lakhs, unless as otherwise stated)

38 The Company has not been declared a wilful defaulter (as defined by RBI Circular) by any bank or financial Institution or other lender.

39 The Company did not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956, during the year.

40 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

41 The Company does not have any subsidiary. Hence, the provisions of clause (87) of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 are not applicable to the Company

42 The Company has not entered into any scheme of arrangement during the year and the previous year.

43 Utilisation of Borrowed funds and share premium:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ii) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded m writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest m other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

45 The Company does not have any undisclosed income that has been surrendered or disclosed as income during the year (previous year) in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

46 The provisions specified under Section 135 of the Act are not applicable to the Company for the current financial year.

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

48 Previous year''s figures have been re-grouped/re-dassified wherever required to conform to current year''s classification. All figures of financials has been rounded to nearest lacs of rupees.

Signatures to Note 1 to 48 For and on behalf of the Board

Prem Chand kankaria Neepa kankaria

Managing Director Director

DIN: 00062584 DIN: 06637083

M. Narsimha k hush boo Joshi

Chief Financial Company Secetary

Officer Memberehip No.: 27992

Place: Hyderabad Date: 25.05.2024

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Mar 31, 2015

A. NATURE OF OPERATIONS

Raj Packaging Industries Limited was incorporated on 18th June, 1987 in Hyderabad, Telangana.It has got manufacturing facility at the outskirts of Hyderabad and engaged in manufacture of multilayer co-extruded plastic film and flexible packaging material. It is a part of the plastic packaging material industry.

B. OTHER NOTES

1. In the opinion of the Board, all the assets other than Non-current Assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all other known liabilities is adequate and not in excess of the amount reasonably necessary.

2.1 Contingent Liabilities and Commitments (to the extent not provided for) - Nil.

2.2 The Company's pending litigations comprise of claims against the Company and proceedings pending with Tax and other Authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

3. Balances in Trade Payables, Trade Receivables, Other Current Liabilities and Loans and Advances are subject to confirmations, reconciliation & adjustments. In the opinion of the management, adjustments, if any, on such confirmations / reconciliations will not have material impact on the profit for the year.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. In terms of Accounting Standard 17, the Company operates materially only in one business Segment viz., Plastic Films and has its production facilities and all other assets located in India. Sales comprise of export sales of Rs. 1,02,87,419 (Previous Year Rs. Nil) and local sales of Rs. 43,95,66,082 (Previous Year Rs. 42,81,41,260)

6. Disclosure in respect of related parties pursuant to Accounting Standard 18:

(A) List of related parties:

Related parties with whom company entered into transactions during the year:

i) Companies in which directors are interested:

Chetanya Securities Private Limited

ii) Key Management Personnel

Shri Prem Kankaria, Managing Director (M.D)

Shri M. Narsimha, CFO (Chief Financial Officer)

iii) Relative of Key Management Personnel and their entities

Miss Neepa Kankaria, Daughter of M.D

Mrs Shyama Kankaria, Spouse of M.D

Kankaria Leasing & Finance Private Limited

7. Previous years figures have been regrouped / rearranged where ever necessary to conform to the current year's presentation.

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Mar 31, 2014

NATURE OF OPERATIONS

Raj Packaging Industries Limited was incorporated on 18th June, 1987 in Hyderabad, Andhra Pradesh. It has got manufacturing facility at the outskirts of Hyderabad and engaged in manufacture of multilayer co- extruded plastic film and flexible packaging material. It is a part of the plastic packaging material industry.

Note 1

A. OTHER NOTES

1. In the opinion of the Board, all the assets other than Non-current Assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all other known liabilities is adequate and not in excess of the amount reasonably necessary.

2. Balances in Trade Payables, Trade Receivables, Other Current Liabilities and Loans and Advances are subject to confirmations, reconciliation & adjustments. In the opinion of the management, adjustments, if any, on such confirmations / reconciliations will not have material impact on the profit for the year.

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

4. In terms of Accounting Standard 17, the Company operates materially only in one business Segment viz., Plastic Films and has its production facilities and all other assets located in India.

6. Disclosure in respect of related parties pursuant to Accounting Standard 18:

(A) List of related parties:

Related parties with whom company entered into transactions during the year:

i) Companies in which directors are interested:

Chetanya Securities Private Limited

Peekay Securities Private Limited (w.e.f 08.04.2013)

ii) Key Management Personnel

Shri Prem Kankaria, Managing Director

iii) Relative of Key Management Personnel and their entities

Miss Neepa Kankaria, Daughter

Kankaria Leasing & Finance Private Limited

Notes:

1. No amounts in respect of related parties have been written off / written back during the year.

2. Figures in bracket represent previous year''s figures.

3. Related parties are as identified by the management and relied upon by the auditors.

12. Previous years figures regrouped / rearranged where ever necessary to conform to the current year''s presentation.

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Mar 31, 2013

NATURE OF OPERATIONS

Raj Packaging Industries Limited was incorporated on 18th June, 1987 in Hyderabad, Andhra Pradesh. It has got manufacturing facility at the outskirts of Hyderabad and engaged in manu- facture of multilayer co-extruded plastic film and flexible packaging material. It is a part of the plastic packaging material industry.

1. In the opinion of the Board, assets other than fixed assets and non-current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The provision for depreciation and all other known liabilities is adequate and not in excess of the amount reasonably necessary.

2. Balances in Trade Payables, Trade Receivables and Short Term loans and Advances are subject to confirmations, reconciliation & adjustments. In the opinion of the management, adjustments, if any, on such confirmations / reconciliations will not have material impact on the loss for the year.

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

4. In accordance with the practice being followed by the Company, no provision has been made in respect of estimated total liability for future payment of Gratuity and Leave Encashment and the same is being accounted for as and when paid which is not in accordance with the accounting method prescribed in Accounting Standard 15 - "Employee Benefits" issued by the Institute of Chartered Accountants of India. However, in the opinion of management, it will not have any material financial impact on the results of the company.

5. In terms of Accounting Standard 17, the Company operates materially only in one business Segment viz., Plastic Films and has its production facilities and all other assets located in India.

6 Disclosure in respect of related parties pursuant to Accounting Standard 18:

(A) List of related parties:

Related parties with whom company entered into transactions during the year:

i) Companies in which directors are interested:

Kankaria Leasing & Finance Private Limited Chetanya Securities Private Limited

ii) Key Management Personnel

Shri Prem Kankaria, Managing Director

Relative of Key Management Personnel

Miss Neepa Kankaria, Daughter

7. Previous years figures regrouped / rearranged where ever necessary to conform to the current year''s presentation.

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Mar 31, 2012

(A) The Company has only one class of equity shares having par value of Rs.10. Each holder of equity shares is entitled to only one vote. The shareholders have the right to receive interim dividend declared by the Board of Directors and final dividend proposed by the Board of Directors and approved by the shareholders. In the event of liquadation of the Company, the holder of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

(B) As per records of the Company, including its Register of Shareholders/Members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

NATURE OF OPERATIONS

Raj Packaging Industries Limited was incorporated on 18th June, 1987 in Hyderabad, Andhra Pradesh. It has got manufacturing facility at the outskirts of Hyderabad and engaged in manufacture of multilayer co-extruded plastic film and flexible packaging material. It is a part of the plastic packaging material industry.

1. Contingent liabilities and commitments (to the extent not provided for):

Particulars Year ended Year ended 31.03.2012 31.03.2011 Rs. Rs.

Commitments Estimated amount of contracts remaining to be executed on capital account and not provided for, Net of Advances Rs. 5,40,000. __ 13,81,000



2. In the opinion of the Board, all the assets other than fixed assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and all other known liabilities is adequate and not in excess of the amount reasonably necessary.

3. Balances in Trade Payables, Trade Receivables and Short Term loans and Advances are subject to confirmations, reconciliation & adjustments. In the opinion of the management, adjustments, if any, on such confirmations / reconciliations will not have material impact on the loss for the year.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. In accordance with the practice being followed by the Company, no provision has been made in respect of estimated total liability for future payment of Gratuity and Leave Encashment and the same is being accounted for as and when paid which is not in accordance with the accounting method prescribed in Accounting Standard 15 - "Employee Benefits" issued by the Institute of Chartered Accountants of India. However, in the opinion of management, it will not have any material financial impact on the results of the company.

6. In terms of Accounting Standard 17, the Company operates materially only in one business Segment viz., Plastic Films and has its production facilities and all other assets located in India.

7. Disclosure in respect of related parties pursuant to Accounting Standard 18: (A) List of related parties:

Related parties with whom company entered into transactions during the year:

i) Companies in which directors are interested:

Kankaria Leasing & Finance Private Limited Chetanya Securities Private Limited

Peekay Securities Private Limited

ii) Key Management Personnel

Shri Prem Kankaria, Managing Director Relative of Key Management Personnel Shri Rajendra Kankaria, Brother Miss Neepa Kankaria, Daughter

Notes:

1. No amounts in respect of related parties have been written off / written back during the year.

2. Figures in bracket represent previous year's figures.

3. Related parties are as identified by the management and relied upon by the auditors.

8. a) The Company uses Forward Exchange Contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company does not enter into any such instruments for trading or speculative purposes.The following are the contracts entered into by the Company and outstanding at the year-end:

9. The Company was using pre-revised Schedule VI to the Companies Act 1956, for the preparation and presentation of its financial statements upto the year ended 31st March 2011. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. The Company has reclassified previous year figures to conform to this year's classification. The adoption of revised Schedule VI does not impact revenue recognition and measurement principles followed for preparation of financial statements.

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Mar 31, 2010

1. Additions to fixed assets include a sum of Rs.7,99,530/- capitalized during the year on account of interest paid upto the period when respective assets were ready for its intended use.

2. In the opinion of the management, the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which those are stated in the Balance Sheet. The provision for depreciation and for all the known liabilities is adequate and not in excess of what is required.

3. Accounts of certain debtors, creditors, loans and advances and unsecured loans given are subject to confirmation and reconciliation, if any. However, in the opinion of management, there would not be any material impact on the financial statements.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

5. A sum of Rs.48,111 (Previous Year Rs.43,460) on account of unclaimed dividend has not been deposited in the Investor Education and Protection Fund as required under Section 205C of the Companies Act, 1956. However, the process for the remittance of the same has already been initiated.

6. In accordance with the practice being followed by the Company, no provision has been made in respect of estimated total liability for future payment of Gratuity and Leave Encashment and the same is being accounted for as and when paid which is not in accordance with the accounting method prescribed in Accounting Standard 15- "Employee Benefits" issued by the Institute of Chartered Accountants of India. However, in the opinion of management, it will not have any material financial impact on the results of the company.

7. In terms of Accounting Standard 17, the Company operates materially only in one business Segment viz., Plastic Films and has its production facilities and all other assets located in India.

8. Deferred Tax Liabi!ity/(Asset) for the year and at the year end comprise timing differences on account of:

9. Disclosure in respect of related parties pursuant to Accounting Standard 18:

(A) List of related parties:

Related parties with whom company entered into transactions during the year:

i) Companies in which directors are interested: Kankaria Leasing & Finance Private Limited Chaitanya Securities Private Limited

ii) Key Management Personnel Shri Prem Kankaria, Managing Director Relative of Key Management Personnel Shri Rajendra Kankaria, Brother

Notes:

1. No amounts in respect of related parties have been written off / written back during the year.

2. Figures in bracket represent previous years figures.

3. Related parties are as identified by the management and relied upon by the auditors.

10. a) Foreign exchange difference (net) debited to Profit and Loss Account Rs.5,96,910/- (Previous Year credited Rs. 13,39,881/-). b) The Company uses Forward Exchange Contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The Company does not enter into any such instruments for trading or speculative purposes.

11. Additional information pursuant to the provisions of Schedule VI of the Companies . Act,1956

* including sale of Raw Material 5.00 MT (Previous Year Nil)

* Including Semi Finished Goods

* Includes sale of Raw Material 5.00 Mts. (Previous Year Nil)

* evaluated as per Income Tax Rules, wherever applicable

12. Previous years figures have been regrouped and rearranged wherever necessary so as to confirm it with the current years presentation.