Notes to Accounts of Shree Rama Multi-Tech Ltd.

Mar 31, 2025

k) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as
a result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. Provisions are not recognised for future
operating losses.

Provisions are measured at the present value of management''s best estimate of the
expenditure required to settle the present obligation at the end of the reporting period. The
discount rate used to determine the present value is a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in
the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events
but their existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of the Company or where any present
obligation cannot be measured in terms of future outflow of resources or where a reliable
estimate of the obligation cannot be made. The Company does not recognize a contingent
liability but discloses its existence in the financial statements.

l) Revenue recognition

The Company recognises revenue when the amount of revenue can be reliably measured, it is
probable that future economic benefits will flow to the Company and specific criteria have been
met for each of the Company''s activities as described below.

Sale of goods

Revenue from sale of goods is recognised when control of the products being sold is transferred
to our customers and there are no longer any unfulfilled obligations. The performance
obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer
acceptance depending on customer terms.

Sale of Service

Revenue from contract with customers for product design and development is recognised at a
point of time in accordance with the terms of the contract.

Sales Return

The Company recognises provision for sales return, on the basis of mutual satisfaction which is
measured at the Sales value excluding taxes & duties.

Export Incentive

Export Incentives under various schemes are accounted in the year in which right to receive is
irrevocably established.

Other revenue:

Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable rate of interest.

Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably
certain that the ultimate collection will be made.

Dividends are generally recognised in the Statement of Profit and Loss only when the right to
receive payment is established.

m) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render
the related service are recognised in respect of employees'' services up to the end of the
reporting period and are measured at the amounts expected to be paid when the liabilities
are settled.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly
within 12 months are measured as the present value of expected future payments to be
made in respect of services provided by employees up to the end of the reporting period
using the projected unit credit method.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit plans is
the present value of the defined benefit obligation at the end of the reporting period less the
fair value of plan assets. The defined benefit obligation is calculated annually by actuaries
using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the
estimated future cash outflows by reference to market yields at the end of the reporting
period on government bonds that have terms approximating to the terms of the related
obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the
defined benefit obligation and the fair value of plan assets. This cost is included in
employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in
actuarial assumptions are recognised in the period in which they occur, directly in other
comprehensive income. They are included in retained earnings in the statement of changes
in equity and in the balance sheet.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, etc., are charged to the Statement of
Profit and Loss as incurred.

Termination benefits

Termination benefits are payable when employment is terminated by the Company before
the normal retirement date, or when an employee accepts voluntary redundancy in
exchange for these benefits. The Company recognises termination benefits at the earlier of
the following dates: (a) when the Company can no longer withdraw the offer of those
benefits; and (b) when the Company recognises costs for a restructuring that is within the
scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an
offer made to encourage voluntary redundancy, the termination benefits are measured
based on the number of employees expected to accept the offer. Benefits falling due more
than 12 months after the end of the reporting period are discounted to present value.

n) Foreign currency translation

Transactions in foreign currencies are recognised at the prevailing exchange rates on the
transaction dates. Realised gains and losses on settlement of foreign currency transactions are
recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end
exchange rates and the resultant exchange differences are recognised in the Statement of
Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are
stated using the exchange rates at the dates of the initial transactions.

o) Taxes

The income tax expense or credit for the period is the tax payable on the current period''s
taxable income based on the applicable income tax rate adjusted by changes in deferred tax
assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences
arising between the tax bases of assets and liabilities and their carrying amount in the financial
statement. Deferred income tax is determined using tax rates (and laws) that have been
enacted or substantially enacted by the end of the reporting period and are excepted to apply
when the related deferred income tax assets is realised or the deferred income tax liability is
settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax
losses, only if, it is probable that future taxable amounts will be available to utilise those
temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset
current tax assets and liabilities and when the deferred tax balances relate to the same taxation
authority. Current tax assets and tax liabilities are off set where the Company has a legally
enforceable right to offset and intends either to settle on a net basis, or to realize the asset and
settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent
that it relates to items recognised in other comprehensive income or directly in equity. In this
case, the tax is also recognised in other comprehensive income or directly in equity,
respectively

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent
there is convincing evidence that the Company will pay normal income tax during the speci fied
period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT
credit asset is written down to the extent there is no longer a convincing evidence to the effect
that the Company will pay normal income tax during the specified period.

p) Earnings Per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• weighted average number of equity shares outstanding during the financial year,
adjusted for bonus elements in equity shares issued during the year and excluding
treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive
potential equity shares, and

• the weighted average number of additional equity shares that would have been
outstanding assuming the conversion of all dilutive potential equity shares.

q) Cash Flow Statement

The Cash Flow statement is prepared by the “Indirect method” set out in Ind AS-7 on “Cash
Flow Statement" and presents the cash flows by operating, investing and financing activities of
the Company.

r) Impairment of Assets:

The Company assesses at each reporting date whether there is an indication that a non¬
financial asset may be impaired based on internal/external factors. An asset is treated as
impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is
charged to the statement of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in earlier accounting period is reversed if there has
been a change in the estimate of recoverable amount. After impairment, depreciation is
provided on the revised carrying amount of the asset over its remaining useful life.

s) Assets held for Sale:

Non-current assets held for sale are measured at the lower of its carrying value or fair value
less costs to sell. Non-current assets held for sale are not depreciated or amortized. Assets and
liabilities classified as held for sale are presented separately in the balance sheet.

[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 impact on its financial statements.

On May 9, 2025, MCA notifies 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 1, 2025. The Company is
currently assessing the probable impact of these amendments on its financial statements.

8.2 In view of consistent profits made by the Company during the past 3 years and based on
assessment made by the management of future business projections and the reasonable certainty
of future taxable profits, the Company has recognised net deferred tax assets amounting to
?2984.93 Lakhs as on March 31, 2025 on carried forward unabsorbed depreciation in accordance
and compliance with the requirements of Ind AS 12 "Income Taxes".

(a) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities
Premium Reserve. The reserve can be utilised in accordance with the specific provisions of the
Companies Act, 2013.

(b) Capital Redemption Reserve

Capital Redemption Reserve is created out of profit available for distribution towards
redemption of preference shares. This reserve can be utilised in accordance with the specific
provisions of the Companies Act, 2013.

(c) Warrants Forfeited Account

Warrants Forfeited Account is created out of paid amount of forfeited warrants.

(d) General Reserve

General Reserve has been created by transfer out of profit generated by the Company and is
available for distribution to shareholders. Under the erstwhile Companies Act, 1956, a general
reserve was created through an annual transfer of net profit at a specified percentage in
accordance with applicable regulations. Consequent to the introduction of the Companies Act,
2013, the requirement to mandatory transfer a specified percentage of net profit to general
reserve has been withdrawn.

(e) Capital reserve

The Company had issued equity shares in the earlier years. This reserve is created on account
of forfeiture of share application money received on account of issuance of equity shares as the
shareholders did not exercise their options.

(f) Retained Earnings

Retained earnings are the profits that the Company has earned till date including effect of
remeasurement of defined benefit obligations less any transfers to general reserve, dividends
or other distributions paid to shareholders. Retained Earnings is a free reserve available to the
Company.

36. In view of carried forward business losses and depreciation in the books, the company is not liable
for Income Tax Liability under section 115JB for Minimum Alternative Tax.

37. The company has made investment of ?13.06 lakhs into equity shares and ?18.60 lakhs in share
application money in Shree Rama (Mauritius) Limited, its wholly owned subsidiary company. The
resident directors & key managerial personnel of the said WOS had resigned in the year 2005-06
and audited accounts for the year ended 30^th September 2003 and onwards could not be prepared.
The WOS became defunct since 2005 under the respective law and its present status is also shown
as ''defunct''. The company has made full provision for diminution in the value of investment in equity
and share application money in earlier years.

In view of the above, it was not possible to prepare consolidated financial statements as required by
Ind AS 110 issued by ICAI, and other provisions of the Companies Act, 2013.

40. Financial Instruments - Fair Values & Risk Management
Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the
instrument could be exchanged in a current transaction between willing parties, other than in a
forced or liquidation sale.

The fair value of investment in quoted equity shares is measured at quoted price.

Fair values of cash and short term deposits, trade and other short term receivables, trade payables,
other current liabilities, short term loans from banks and other financial institutions approximate their
carrying amounts largely due to short-term maturities of these instruments.

Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on the
evaluation, allowances are taken into account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial
instruments by valuation technique:

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

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset
or liability, either directly or indirectly.

Level 3 : Input that is significant to the fair value measurement is unobservable.

As per Ind AS 109, we have adopted a policy for assessing credit risk as per expected credit loss
model for outstanding balances as on balance sheet date, based on the past performance and by
assessing overall credit worthiness of debtors, we arrived at the following rate to be provided on
closing debtors as per their ageing bucket:

Other Financial Assets

The company has limited credit risk arising from cash and cash equivalents as the balances are
maintained with banks with high credit rating. Hence, these are low risk items.

The company evaluates the recoverability of Other financial assets at each reporting date and the
same are written off when there is no reasonable expectation of recovery. Where recoveries are
made, these are recognised in the Statement of Profit and Loss.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and
the availability of funding through an adequate amount of committed credit facilities to meet
obligations when due and to close out market positions. Due to the dynamic nature of the
underlying businesses, company treasury maintains flexibility in funding by maintaining availability
under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. This is generally carried out at local level in the
operating companies of the company in accordance with practice and limits set by the company.
These limits vary by location to take into account the liquidity of the market in which the entity
operates. In addition, the company''s liquidity management policy involves projecting cash flows in
major currencies and considering the level of liquid assets necessary to meet these, monitoring
balance sheet liquidity ratios against internal and external regulatory requirements and maintaining
debt financing plans.

43. Market Risk Management

(a) Foreign Currency Risk

The company operates internationally and is exposed to foreign exchange risk arising from
foreign currency transactions, primarily with respect to the US$, EUR, CHF & RUB. Foreign
exchange risk arises from future commercial transactions and recognized assets and liabilities
denominated in a currency that is not the company''s functional currency (INR). The risk is
measured through a forecast of highly probable foreign currency cash flows.

(b) Cash flow and fair value interest rate risk

The company''s main interest rate risk arises from long-term borrowings with variable rates,
which expose the company to cash flow interest rate risk. The Company policy is mainly to
maintain its borrowings at fixed rate. As on 31^st March 2025 and 31^st March 2024, the
company''s borrowings at variable rate were denominated in INR.

The company''s fixed rate borrowings are carried at amortized cost. They are therefore not
subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the
future cash flows will fluctuate because of a change in market interest rates.

44. Capital Management

The company''s objectives when managing capital are to:

a. safeguard their ability to continue as a going concern, so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and

b. Maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the company monitors capital on the basis of the
following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by total ''equity'' (as shown
in the balance sheet, including non-controlling interests).

47.2 Andhra bank Ltd. has filed suit in Debt Recovery Tribunal against East West Polyart Ltd. as
Principal Debtor and the Company as a guarantor and Recovery Officer has demanded ? 933.34
lakhs (net of Recovery already made and including interest). Review Application filed by the
Company against Demand Notice has been admitted by Debt Recovery Tribunal, Ahmedabad.
The matter is pending before DRT.

47.3 The Company had received Order from the National Company Law tribunal, Ahmedabad Bench
on July 28, 2023 u/s 55(3) of the Companies Act, 2013 granting Approval to issue and allot
7,66,666 Preference Shares of ?100/- each to the existing preference shareholder of the value
equivalent to the outstanding 6,66,666 unredeemed preference shares amounting to ? 666.66
lakh together with unpaid dividend of ?100 lakh thereon. Accordingly, the Company issued and
allotted 15% Cumulative Redeemable Preference Shares of ? 100/- each on September 11, 2023
for the tenure of five years to be redeemed in three equal instalments at the end of third, fourth
and fifth year from the date of allotment. As at March 31, 2025, dividend on cumulative
redeemable preference shares amounting to ?230 lakhs (PY ?115 lakhs) remains unpaid due to
insufficient profits and will be paid as and when the company has distributable profits.

47.4 (a) In respect of Tax assessments for A.Y. 2002-03 to 2004-2005, the income tax department

has made additions or disallowances amounting to ? 2915.17 lakhs in respect of depreciation
on tangible assets which has resulted into reduction of carried forward losses under income
tax Act. The tribunal has granted relief against which the department has filed an appeal
before the High Court.

(b) In respect of Tax assessments for A.Y. 2012-13 & 2013-14, the income tax department has
made additions or disallowances amounting to ? 18358.24 lakhs in respect of treatment of
gain arising on settlement /waiver of loans and for other matters which has resulted into
reduction of carried forward losses under income tax Act. The tribunal had passed the
combined appellate order dated November 08, 2023, against which the department has filed
appeal before the High Court.

47.5 (a) The Excise Department had raised demand for Accounting Year 2004-05 by denying

CENVAT Credit of ? 131.45 lakh in respect of Raw Material used for new Plant in the Trial
Run and also imposed the penalty of ? 131.45 lakhs against which the Company has filed an
Appeal before CESTAT and it has allowed the Company''s Appeal. The Department has filed
an Appeal against the said Order in the High Court which is pending for Final Hearing.

(b) The Central GST Division, Kalol has also raised Demand for ? 10.73 lakh and also imposed
interest for audit of Excise for the period March, 2014 to March, 2016 against which the
Company has filed an Appeal to the Commissioner and matter is remanded back to the
Assessing Officer for fresh Adjudication.

(c) The State GST Division, Kalol Gujarat has raised a tax demand by issuing an notice for an
amount of ? 7.58 lakh and also imposed interest at 18% and a penalty at 10% on tax
demand for the period July 2017 to March 2018. The company has filed an appeal to the
Commissioner (Appeal) against this.

47.6 (a) The company has imported Auto Flex Die & a new MLFP Machine which has been received

and put to use in the financial year 2023-2024 and 2024-25 respectively. The company has
saved import duty to the extent of ? 540.18 lakhs under the Export Promotion Capital Goods
Scheme. The Company has an obligation of Export Turnover of ? 18292.06 Lakhs to be
achieved in next Five (5) years.

(b) The company has imported Auto Flex Die Machine & 999-405-201 Mini 120 Fully Automatic
System type Mini 120 for the production of laminate tubes which has been received and put
to use in the financial year 2024-25 & 2025-26 respectively. The company has saved import
duty to the extent of ? 544.72 lakhs under the Export Promotion Capital Goods Scheme. The
Company has an obligation of Export Turnover of ? 22853.62 Lakhs to be achieved in next
Six (6) years.

49.2 Defined Benefits Plan
(A) Leave encashment:

The leave encashment are payable to all eligible employees at the rate of daily salary for
each day of accumulated leave on death or on resignation or upon retirement on attaining
superannuation age.

(B) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five
years or more of service gets a gratuity on death or resignation or retirement at 15 days
salary [last drawn salary] for each completed year of service. The scheme is funded with an
insurance company in the form of a qualifying insurance policy.

54. The Company evaluates events and transactions that occur subsequent to the Balance Sheet date
prior to the approval of the financial statements to determine the necessity for recognition and/or
reporting of any of these events and transactions in the Financial Statements. As of May 14, 2025
there was no subsequent event to be recognised or reported that are not already disclosed
elsewhere in these Financial Statements.

55. The company does not hold any benami property as defined under the Benami Transactions
(Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been
initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

56. The Company has not traded or invested in crypto currency or virtual currency during the financial
year.

57. The Company does not have any such trasaction which is not recorded in the books of accounts
that has been surrendered or disclosed as income during the 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).

58. The Company have 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.

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

(a) directly or indirectly lend or invest in 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.

60. Segment Reporting

60.1 The company operates in a single segment and in line with Ind AS - 108 "Operating Segments",
the operations of the Company fall under "Manufacturing of Packaging Materials" business which is
considered to be the only reportable business segment.

60.2 Details of information about geographical areas for sales are as below:

60.3 There are no non-current assets other than in India.

60.4 There is a reputed customer accounted for more than 10 % of the revenue during the year 2024¬
25. Further, there are 2 customers having outstanding balance of more than 10 % of the total
receivable as on 31^st March, 2025.

61. The company has used accounting software for maintaining its books of account which has a
feature of recording audit trail (edit log) facility and the same has been operated throughout the year
for all relevant transactions recorded in the software. Further, there are no instances of audit trail
being tampered with. Additionally, the audit trail of prior year(s) has been preserved by the
Company as per the statutory requirements for record retention.

62. Previous year''s figures have been regrouped/re-arranged/recasted, wherever necessary, so as to
make them comparable with current year''s figures. The management believes that such

reclassification does not have any material impact on the information presented in the Financial
Statements.

As per our report of even date attached herewith For and on behalf of the Board

For Mahendra N. Shah & Co. Mittal K. Patel Shailesh Desai

Chartered Accountants Chairman Managing Director

FRN: 105775W (DIN: 03619139) (DIN: 01783891)

Chirag M. Shah Hemant Shah Mirtunjay S. Mishra

Partner Chief Financial Officer Company Secretary

M. No.: 045706

Place : Ahmedabad Place : Moti-Bhoyan

Date : 14/05/2025 Date : 14/05/2025

---

Mar 31, 2024

I) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The

discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

m) Revenue recognition

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company''s activities as described below.

Sale of goods

Revenue from sale of goods is recognised when control of the products being sold is transferred to our customers and there are no longer any unfulfilled obligations. The performance obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer acceptance depending on customer terms.

Sales Return

The Company recognises provision for sales return, on the basis of mutual satisfaction which is measured at the Sales value excluding taxes & duties.

Other operating revenue:

Export Incentives under various schemes are accounted in the year in which right to receive is irrevocably established.

Other revenue:

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable rate of interest.

Interest received on delayed payment is accounted on receipt basis.

Revenue in respect of insurance/other claims etc, is recognized only when it is reasonably certain that the ultimate collection will be made.

Dividends

Dividends are generally recognised in the Statement of Profit and Loss only when the right to receive payment is established.

n) Employee benefits

(i) Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render

the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

(ii) Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to be settled wholly within 12 months are measured as the present value of expected future payments to be made in respect of services provided by employees up to the end of the reporting period using the projected unit credit method.

(iii) Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined benefit plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, etc., are charged to the Statement of Profit and Loss as incurred.

Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the Company recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

o) Foreign currency translation

Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign currency transactions are recognised in the Statement of Profit and Loss.

Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are recognised in the Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are stated using the exchange rates at the dates of the initial transactions.

p) Leases As a Lesee

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

The Company recognises a Right-of-Use (ROU) asset and a lease liability at the lease commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payment made at or before the commencement date, plus any initial direct cost 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 incentive received.

The ROU asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the ROU asset or the end of the lease term. The estimated useful lives of ROU assets are determined on the same basis as those of Property, Plant and Equipment. In addition, the ROU asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

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.

Short-term leases and leases of low-value assets

The Company has elected not to recognise right-to-use assets and lease liabilities for shortterm lease that have a lease term of 12 months or less and leases of low-value assets. The Company recognise the lease payments associated with these leases as an expenses on a straight-line basis over the lease term.

q) Taxes

The income tax expense or credit for the period is the tax payable on the current period’s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are excepted to apply when the related deferred income tax assets is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for all deductible temporary differences and unused tax losses, only if, it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are off set where the Company has a legally enforceable right to offset and intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively

Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

r) Earnings Per Share

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company

• weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

s) Cash Flow Statement

The Cash Flow statement Is prepared by the “Indirect method” set out in Ind AS-7 on “Cash Flow Statement“ and presents the cash flows by operating, investing and financing activities of the Company.

t) Impairment of Assets:

The Company assesses at each reporting date whether there is an indication that a nonfinancial asset may be impaired based on internal/external factors. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An impairment loss is charged to the statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a change in the estimate of recoverable amount. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

u) Assets held for Sale:

Non-current assets held for sale are measured at the lower of its carrying value or fair value less costs to sell. Non-current assets held for sale are not depreciated or amortized. Assets and liabilities classified as held for sale are presented separately in the balance sheet.

v) Exceptional items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide further understanding of the financial performance of the company. These are material items of income or expense that have to be shown separately due to their nature or incidence.

w) Recent Pronouncement

The Ministry of Corporate Affairs has vide notification dated March 31, 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 (the ‘Rules'') which amends certain accounting standards, and are effective April 1, 2023. The Rules predominantly amends Ind AS 1 - “Presentation of financial statements” and Ind AS 12 - "Income taxes”, whereas the other amendments notified by these rules are primarily in the nature of clarifications. As per the Management’s assessment, these amendments are not expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions.

15.6 Rights of shareholders

All equity shares carry equal rights with respect to voting and dividend. In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after distribution of all preferential amounts.

15.7 During the period under review, the company has successfully completed the Rights issue of 7,00,00,000 Equity Shares of face value of ?5/- each at an issue price of ?9/- per Equity Share (including premium of ?4/- per Equity Share) aggregating to ?6,300 lakhs. The allotment of equity shares was made on July 3, 2023. Consequently, ?2800 lakhs are credited to Share premium and ?3500 lakhs are credited to Equity Share capital.

15.8 Pursuant to rights issue of 7,00,00,000 Equity Shares of face value of ?5/- each at an issue price of f9l- per Equity Share (including premium of f41- per Equity Share) aggregating to ?6,300 lakhs, Nirma Chemical Works Private Limited (NCWPL) has subscribed to 5,16,69,490 equity shares of the company. The overall effective holding of NCWPL in the company has increased thereby from 37.46% to 56.53%. Owing to the effective ownership being more than 50%, NCWPL is thereby recognised as the holding company of Shree Rama Multi-Tech Limited and accordingly the Company became the subsidiary of NCWPL.

(a) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provisions of the Companies Act, 2013.

(b) Capital Redemption Reserve

Capital Redemption Reserve is created out of profit available for distribution towards redemption of preference shares. This reserve can be utilised in accordance with the specific provisions of the Companies Act, 2013.

(c) Debenture Redemption Reserve

Debenture Redemption Reserve is created out of profit available for distribution towards redemption of debentures. This reserve can be utilised in accordance with the specific provisions of the Companies Act, 2013.

(d) Warrants Forfeited Account

Warrants Forfeited Account is created out of paid amount of forfeited warrants.

(e) General Reserve

General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders. Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

(f) Capital reserve

The Company had issued equity shares in the earlier years. This reserve is created on account of forfeiture of share application money received on account of issuance of equity shares as the shareholders did not exercise their options.

(g) Retained Earnings

Retained earnings are the profits that the Company has earned till date including effect of remeasurement of defined benefit obligations less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

39. Financial Instruments - Fair Values & Risk Management Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

Fair values of cash and shortterm deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

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

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Input that is significant to the fair value measurement is unobservable.

43. Capital Management

The company’s objectives when managing capital are to

a. safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

b. Maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ‘equity’ (as shown in the balance sheet, including non-controlling interests).

46.2 Andhra bank Ltd. has filed suit in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and the Company as a guarantor and Recovery Officer has demanded ?933.34 lakhs (net of Recovery already made and including interest). Review Application filed by the Company against Demand Notice has been admitted by Debt Recovery Tribunal, Ahmedabad. The matter is pending before DRT.

46.3 The Company has received Order from the National Company Law tribunal, Ahmedabad Bench on July 28, 2023 u/s 55(3) of the Companies Act, 2013 granting Approval to issue and allot 7,66,666 Preference Shares of ? 100/- each to the existing preference shareholder of the value equivalent to the outstanding 6,66,666 unredeemed preference shares amounting to ?666.66 lakhs together with unpaid dividend of ?100 lakhs thereon. Accordingly, the Company has issued and allotted further 15% Cumulative Redeemable Preference Shares of ?100/- each on September 11, 2023 for the tenure of five years to be redeemed in three equal instalments at the end of third, fourth and fifth year from the date of allotment. On issue of new Preference Shares, the Preference shareholder has waived the right to claim accumulated dividend on preference shares and accumulated interest on delayed payment of Dividend. The Company has written back the provision for interest on delayed payment of dividend on preference shares of ?47.50 lakhs.

46.4 The Company has settled and made payment of ?6171.86 lakhs to the Lenders of outstanding Loans and Debentures out of the proceeds of the Rights issue. The principal amount has been repaid as per the settlement agreement and the Lenders have waived outstanding interest and other charges as applicable on the Borrowings amounting to ?18336.26 lakhs, which was hitherto disclosed in Contingent Liability. The Company is now no longer required to make any provision for payment of interest, since the principal amount has been paid as per the settlement agreement.

46.5 In respect of Tax assessments for A.Y. 2012-13 & 2013-14, the income tax department has made additions or disallowances amounting to ?20270.00 lakhs in respect of treatment of gain arising on settlement /waiver of loans and for other matters which has resulted into reduction of carried forward losses under income tax Act, against which the department has filed appeal before the High Court and Income Tax Appellate Tribunal.

46.6 The Assistant Commissioner of income Tax, TDS Circle, Ahmedabad vide its order dated March 16, 2022 (“Order") directed our company to pay an aggregate amount of ?1.35 lakhs towards failure of deduction of TDS for the assessment year 2015-16 and interest payable under section 201(1 A) of the Income Tax Act, 1961. The Assistant Commissioner of Income Tax vide its notices dated March 16, 2022 and June 02, 2022 directed our company to pay a sum of ?1.35 lakhs. Against this order, appeal was filed before CIT(A), which is pending as on date.

46.7 (a) In respect of AY 2021-22, the Income Tax Department has made disputed addition of ?2.03

lakhs and adjusted demand of ?2.07 lakhs against which the Company has preferred appeal before ITAT and no provision is made for the same.

(b) Order under sec 154 of Income Tax Act was passed on June 05, 2023 for AY 2020-21 under which total income determined was ?59.59 lakhs and total demand payable was ?7.04 lakhs. The company has filed an appeal to CIT (Appeals) and the matter is pending as on date.

46.8 (a) The Excise Department had raised demand for Accounting Year 2004-05 by denying

CENVAT Credit of ?131.45 lakhs in respect of Raw Material used for new Plant in the Trial Run and also imposed the penalty of ?131.45 lakhs against which the Company has filed an Appeal before CESTAT and it has allowed the Company’s Appeal. The Department has filed an Appeal against the said Order in the High Court which is pending for Final Hearing.

(b) The Central GST Division, Kalol has also raised Demand for ?10.73 lakhs and also imposed interest for audit of Excise for the period March, 2014 to March, 2016 against which the Company has filed an Appeal to the Commissioner and matter is remanded back to the Assessing Officer for fresh Adjudication.

(c) The State GST Division, Kalol Gujarat has raised a tax demand by issuing a notice for an amount of ?7.58 lakhs and also imposed interest at 18% and a penalty at 10% on tax demand for the period July 2017 to March 2018. The company has filed an appeal to the Commissioner (Appeal) against this.

46.9 The company has imported Auto Flex Die & a new MLFP Machine which has been received and put to use in the financial year 2023-2024 and 2024-25 respectively. The company has saved import duty to the extent of ?540.18 lakhs under the Export Promotion Capital Goods Scheme. The Company has an obligation of Incremental Export Turnover of ?3241.10 Lakhs in Six Years i.e six times of Duty Saved. The Company has achieved Average Export Turnover of f3235.00 Lakhs during Last Three Years. Thus Company has an obligation of Export Turnover of ?22651.10 Lakhs to be achieved in Next Six (6) years. The company can also fulfil the criteria by achieving 75% of the stipulated export turnover within the next 4 years.

In view of the facts and positive outcome, the Management is of the view that no any provisions is required for the above.

54. The Company evaluates events and transactions that occur subsequent to the Balance Sheet date prior to the approval of the financial statements to determine the necessity for recognition and/or reporting of any of these events and transactions in the Financial Statements. As of May 18, 2024 there was no subsequent event to be recognised or reported that are not already disclosed elsewhere in these Financial Statements.

55. The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

56. The Company has not traded or invested in crypto currency or virtual currency during the financial year.

57. The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the 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).

58. The Company have 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.

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

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

60.3 There are no non-current assets other than in India.

60.4 There is a reputed customer accounted for more than 10% of the revenue during the year 2023-24. Further, there are 2 customers having outstanding balance of more than 10% of the total receivable as on 31^s1 March, 2024.

61. Previous year’s figures have been regrouped / re-stated / reclassified wherever necessary. Figures in brackets relate to previous year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

As per our report of even date attached herewith For and on behalf of the Board

For Mahendra N. Shah & Co. Mittal K. Patel Shailesh Desai

Chartered Accountants Chairman Managing Director

FRN: 105775W (DIN: 03619139) (DIN: 01783891)

Chirag M. Shah HemantShah SandipMistry

Partner M. No.: 045706 Chief Financial Officer Company Secretary

A-6548

Place : Ahmedabad Place : Moti-Bhoyan

Date : 18/05/2024 Date : 18/05/2024

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Mar 31, 2018

[A] Corporate Information:

The company is incorporated in India and is a leading Packaging solution provider. The Company has its wide market in local as well foreign market. The Company sells its products through established network. Its shares are listed on National Stock Exchange of India Limited and BSE Limited.

The Financial Statements were authorized for issue in accordance with a resolution of the directors on May 24, 2018.

1. In respect of Pondicherry unit of the Company which is not operational for last several years, the management has identified existing fixed assets (land, building and electric installation) to be not in active use and has initiated actions for disposal of these assets. Accordingly, these assets are disclosed under "assets held for sale/disposal” at lower of cost or fair market value and no depreciation has been charged to the Statement of Profit & Loss.

2. Earning Per Share

Earning per share is calculated by dividing the Profit / (Loss) attributable to the Equity Shareholders by the weighted average number of Equity Shares outstanding during the year. The numbers used in calculating basic and diluted earning per Equity Share as stated below:

3. In expectation of a positive outcome of settlement and compromise with lenders, the accounts have been prepared on “Going Concern” basis. (Refer note no. 53.5 related to scheme with lenders.)

4. The company has been sanctioned credit facilities (Overdraft) against lien over Fixed Deposits. The Company has pledged Fixed Deposits of Rs. 352 lakhs up to 17/12/2017 (Previous Year Rs. 1246.30 lakhs) plus accrued interest thereon for the Overdraft facility.

5. Outstanding balances as on 31.03.2018 of Creditors, Debtors, Secured and Unsecured Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

6. During the year there is exchange fluctuation gain of Rs. 3.71 lakhs (Previous Year loss of Rs. 9.78 lakhs) on current account and the same is shown separately.

7. In view of carried forward business losses and depreciation in the books, the company is not liable for Income Tax Liability under section 115JB for Minimum Alternative Tax.

8. In view of the accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unsecured Debentures and

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

9. The company has made investment of Rs. 13.06 lakhs into equity shares and Rs. 18.60 lakhs in share application money in Shree Rama (Mauritius) Limited, its wholly owned subsidiary company. The resident directors & key managerial personnel of the said WOS had resigned in the year 2005-06 and audited accounts for the year ended 30th September 2003 and onwards could not be prepared. Its present status is shown as ''defunct'' under respective laws. The company has made full provision for diminution in the value of investment in equity and share application money in earlier years.

In view of the above, it was not possible to prepare consolidated financial statements as required by Ind AS 110 issued by ICAI, and other provisions of the Companies Act, 2013.

10. As permitted by CERC and IERC (Regulatory authorities) the company has partially opted for purchase of power through approved Power Exchange which has resulted into gain of Rs 1.48 lakhs (Previous Year Rs. 32.26 lakhs) and consequently the power expenses was reduced to that extent.

11. Previous year''s figures have been regrouped / re-stated / reclassified wherever necessary. Figures in brackets relate to the previous year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

12. Disclosure in terms of Regulation 34(3) of SEBI (LODR) Regulations, 2015:

13. Financial Instruments - Fair Values & Risk Management Accounting Classifications & Fair Value Measurements

13.1. The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

13.1.1. The fair value of investment in quoted equity shares and mutual funds is measured at quoted price or NAV.

13.1.2. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

13.1.3. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

13.1.4. The fair value of forward foreign exchange contracts and currency swaps is determined using forward exchange rates and yield curves at the balance sheet date.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

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

Level 2: Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

No financial instruments have been routed through Other Comprehensive Income and hence separate reconciliation disclosure relating to the same is not applicable

(14) Credit Risk Management

As per Ind AS 109, we have adopted a policy for assessing credit risk as per expected credit loss model for outstanding balances as on balance sheet date, based on the past performance and by assessing overall creditworthiness of debtors we arrived at the following rate to be provided on closing debtors as per their ageing bucket:

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecasts of the company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. This is generally carried out at local level in the operating companies of the company in accordance with practice and limits set by the company. These limits vary by location to take into account the liquidity of the market in which the entity operates. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

(15) Market Risk Management

(a) Foreign Currency Risk

The company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the US$, EUR. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the company''s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

(b) Cash flow and fair value interest rate risk

The company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk. The Company policy is mainly to maintain its borrowings at fixed rate. During as on 31st March 2018 and as on 31st March 2017, the company''s borrowings at variable rate were denominated in INR.

The company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

The company''s exposure to equity securities price risk arises from investments held by the company and classified in the balance sheet at fair value through profit or loss having carrying amount Rs. 0.58 Lakhs as on 31.03.2018 and Rs 0.51 Lakhs as on 31.03.2017.

(16) Capital Management

The company''s objectives when managing capital are to

a. safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

b. Maintain an optimal capital structure to reduce the cost of capital.

Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratio:

Net debt (total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the balance sheet, including non-controlling interests).

Effective Tax rate :

Consequent to reconciliation items shown above, the effective tax is Nil for both the years.

16.1 Andhra bank Ltd. has filed suit in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and the Company as a guarantor and Recovery Officer has demanded Rs. 933.34 lakhs (net of Recovery already made and including interest). Review Application filed by the Company against Demand Notice has been admitted by Debt Recovery Tribunal, Ahmedabad.

16.2 (a) In respect of 10,00,000 15% Cumulative Preference Shares of Rs. 100/- each which were redeemable in three equal installments at the end of third, fourth and fifth year from 30th March,1998. 3,33,334 Preference Shares being first installment were redeemed on 30th March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed.

(b) The Company has declared and provided in books dividend of Rs. 100 lakhs for the year 2000-01 on 666666 15% Redeemable Preference Shares. In view of the pending approval of the scheme from Hon''ble High court of Gujarat, the Company has not reversed the said provision and also not transferred the said amount to IEPF.

16.3 The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 200 lakhs in respect of other lenders who has initiated actions u/s 138 has settled dues under OTS and necessary withdrawal petition are under process.

16.4 The company had filed the scheme of Arrangement and Compromise with the Financial Institutions/ Banks and Shareholders on 17/07/08 bearing petition No. 401/2008 and it is approved by majority of Shareholders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is dismissed by the Hon''ble High Court of Gujarat. The Company has filed an appeal against the order in petition of the scheme of compromise and arrangement u/s 391 of the Companies Act, which is admitted by larger bench of Hon''ble High court of Gujarat. The Appeal with the larger bench has been finally heard by the Hon''ble High court of Gujarat and Hon''ble Court has reserved the order.

16.5 In respect of loans and debentures aggregating to Rs. 6171.86 lakhs which are under settlement as per scheme, the company has not provided interest of Rs. 854.72 lakhs (Previous Year Rs. 854.72 lakhs) on the same for the year ending on 31st March, 2018. Therefore, loss of the year would have been increased by Rs 854.72 lakhs. The accumulated interest not provided for up to March 31, 2018 is Rs. 13828.49 lakhs (Previous Year Rs. 12973.77 lakhs).

16.6 In respect of demand notice for excise duty of Rs. 2635.30 lakhs received from Excise Department plus interest thereon, the Company preferred appeal before CESTAT, which has been decided against the Company. In context with the legal opinion received from senior advocate, the said demand and liability will not sustain in view of the facts and merits of the case. Accordingly, the Company has not made the provision for the said liability in the books and treated the same as Contingent Liability and has disclosed accordingly. The company has paid Rs. 300 lakhs on accounts against such liability.

16.7 The disputed liability of VAT/CST for the year 2013-14 is mainly on account of non-receipt of statutory forms.

16.8 In respect of Tax assessments for A.Y. 2012-13 & 2013-14, the income tax department has made additions or disallowances amounting to Rs. 19974 lakhs in respect of treatment of gain arising on settlement /waiver of loans and for other matters which has resulted into reduction of carried forward losses under Income Tax Act against which company has preferred appeal before commissioner of income tax.

(17) Commitments

(a) Capital Commitments

Capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as follows:

(b) Non cancellable operating Lease : Not Applicable

(c) Repair & Maintenance, Investment Property : Not Applicable

(18) Employee Benefits Defined Benefits Plan

(a) Leave encashment: The leave encashment are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

Gratuity: The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

19. Notes for borrowing particulars:

1. In respect of various overdue long term borrowings excluding Working Capital Term Loan are treated as “Non-current interest-bearing loans and borrowings” since the matter is sub judice and pending before larger bench of Hon''ble High Court of Gujarat in respect of scheme of Compromise and Arrangement.

2. The Company has defaulted in repayment of above secured term loans since 2002-03.

3. Term Loans:- Term Loans of Rs 2500 Lakhs from NCWPL are secured by first charge on whole of movable fixed assets etc. both present and future including movables as described in Schedule III of DO Hand first charge on whole immovable properties situated at village: Moti-Bhoyan, Ambaliyara & Pondicherry ranking pari-passu with the charges created / to be created in favour of a trustee for privately placed debentures and personal guarantee of some of the erstwhile directors.

4. Non-Convertible Debentures

(a) 700000 (15.5%) Redeemable Non-Convertible Debentures privately placed with lenders (Rs. 500 lakhs with NCWPL & Rs. 200 Lakhs with NCCPL) are secured by way Mortgage of immovable assets both present and future situated at village: Moti-Bhoyan in the state of Gujarat and charges on movable assets of the Company at all locations in Gujarat in favour of a trustee, ranking pari-passu with the charges created on the said assets for term loans from lenders.

(b) 300 (13.5%) Redeemable Non-Convertible Debentures privately placed with NCWPL are secured by first charge on whole of movable properties both present and future, situated at Moti-Bhoyan, Ambaliyara, Pondicherry and immovable property both present and future, situated at village: Moti Bhoyan & Ambaliyara in the state of Gujarat in favour of a trustee, ranking pari-passu with the charges created / to be created on the said assets for term loans from lenders.

5. Unsecured

Working Capital Term Loan from RBL is bank secured by exclusive first charge on entire fixed assets and current assets of the Company to be created and unconditional and irrecoverable Corporate Guarantee of Nirma Ltd. Repayable in 72 installments commencing from six months from availment of loan. Interest payable @ 0.05% p.a. above base rate.

(20) The company operates in only single Segment viz. Packaging Material Information about Geographical Areas (Sales)

There are no any non-current assets other than at India.

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Mar 31, 2016

1 Secured

(2) Non Convertible Debentures

(3) 700000 (15.5%) Redeemable Non convertible Debentures privately placed with lenders are secured by mortgage of the present and future immovable assets and charges on movable assets of the Company in favour of a trustee, ranking pari passu with the charges created on the said assets for term loans from lenders.

(4) 300 13.5 % Redeemable Non convertible Debentures privately placed with NCWPL are secured by mortgage on the immovable assets and charge on movable assets of the Company, both present and future, in favour of a trustee, ranking pari passu with the charges created / to be created on the said assets for term loans from lenders.

(5) Term Loans :- Term Loans from NCWPL are Secured by first charge on all present and future assets of the Company''s units at Moti Bhoyan, Ambaliyara and Puducherry ranking pari passu with the charges created / to be created in favour of a trustee for privately placed debentures and personal guarantee of some of the erstwhile directors.

Unsecured

(6) Working Capital Term Loan from RBL is bank secured by exclusive first charge on entire Fixed Assets and Current Assets of the Company to be created and unconditional and irrecoverable Corporate Guarantee of Nirma Ltd. Repayable in 72 installments commencing from six months from availment of loan. Interest payable @ 0.25 % p.a. OBR

7. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD - 15 [REVISED] ‘EMPLOYEE BENEFITS’:

a) General description:

Gratuity [Defined benefit plan]:

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

8. Leave wages [Long term employment benefit]

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

9. The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 200 lacs in respect of other lenders who has initiated actions u/s 138 has settled dues under OTS and necessary withdrawal petition are under process.

10. The company had filed the scheme of Arrangement and Compromise with the Financial Institutions/Banks and Shareholders filed on 17/07/08 bearing petition No. 401/2008 and it is approved by majority of Shareholders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme was dismissed by the Hon''ble High Court of Gujarat. The Company has filed review petition of the scheme of compromise and arrangement u/s 391 of the Companies Act, which is admitted by larger bench of Hon''ble High court of Gujarat.

11. In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on “Going Concern” basis.

12. In respect of loans and debentures aggregating to Rs. 6171.86 lacs which are under settlement as per scheme, the company has not provided interest of Rs. 854.72 lacs (Previous Year Rs. 1206.51 lacs) on the same for the year ending on 31^st March, 2016. Therefore, loss of the year would have been increased by Rs. 854.72 lacs. The accumulated interest not provided for up to 31-03-2016 is Rs. 12119.05 lacs (Previous Year Rs. 16052.36 lacs).

13.The company has been sanctioned credit facilities of Letters of Credit, Overdraft and guarantee against lien of Fixed Deposits. The Company has pledged Fixed Deposits of Rs. 1179.99 lacs (Previous Year Rs. 1310.95 lacs) plus accrued interest thereon for the Overdraft facility and Guarantee of Rs. 1027.12 lacs and Rs. 152.87 lacs respectively as on 31.03.2016. (Previous Year Rs. 38.06 lacs against Letter of credit Rs. 1120.02 lacs against over draft facility and Rs. 152.87 Lacs against Guarantee).

14. Outstanding balances as on 31-03-2016 of Creditors, Debtors, Secured and Unsecured Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

15. i) The Company has in earlier year received demand notice for excise duty from Excise department for Rs. 2665.30 lacs. The Company had made provision of excise duty of Rs. 2665.30 lacs and interest of Rs. 2087.59 lacs thereon in books of account and therefore on the basis of legal advice and CESTAT order DT: 22/06/2012 the company reversed the said provision and has disclosed the said amount of Rs. 5251.54 lacs as contingent liabilities. The company has paid Rs. 300 lacs on accounts against such liability.

ii) In respect of old disputed debtors against whom legal cases are filed, the company has made provision of Rs. 26.59 lacs for doubtful debts.

16. During the year, Company has entered into one time settlement with some of the lenders resulted into waiver of portion of loan. The Company has settled said loans for Rs. 1100.00 lacs against carrying amount of Rs. 2419.27 lacs.

The said loans were originally used for Capital purpose and hence resultant surplus of Rs. 1319.27 lacs arising on such settlement agreed by the lenders have been credited to Capital Reserve. (Previous Year credited to Capital Reserve Rs. 950.00 lacs and to Profit and loss Account Rs.77.57 lacs.)

17. a) During the year there is Exchange Fluctuation gain (net) of Rs. 2.76 Lacs (Previous Year loss of Rs. 10.66 Lacs) on current account and the same is shown separately.

b) The Exchange Fluctuation loss (net) on capital Account of Rs.2.43 Lacs is capitalized to the cost of Fixed Assets (Previous year Gain of Rs.11.70 lacs).

18. In view of carried forward business losses and depreciation in the books, the company is not liable for Income Tax Liability under section 115JB for Minimum Alternative Tax.

19. In view of the Accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unsecured Debentures and

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

20. In respect of tax assessments for A.Y. 2012-13 & 2013-14 the Income Tax Department has made additions or disallowances amounting to Rs. 199.74 crores in respect of treatment of gain arising on settlement /waiver of loans and for other matters which has resulted into reduction of carried forwarded losses under Income Tax against which the Company has preferred appeal before commissioner of Income Tax.

21. The company had made investment of Rs. 13.06 lacs into equity shares and Rs. 18.60 lacs in share application money in Shree Rama (Mauritius) Limited, its wholly owned subsidiary company (WOS). The resident directors & key managerial personnel of the said WOS had resigned in the year 2005-06 and audited accounts for the year ended 30th September 2003 and onwards could not be prepared and provided. Its present status is shown as ''defunct’ under respective laws. The company has accordingly provided for diminution in the value of investments in the earlier years.

In view of the above, it was not possible to prepare consolidated financial statements as required by Accounting Standard 21 issued by ICAI, and other provisions of the Companies Act, 2013.

22. As permitted by CERC and IERC (Regulatory authorities) the company has partially opted for purchase of power through approved Power Exchange which has resulted into gain of Rs. 44.03 lacs (Previous Year Rs.10.26 lacs) and consequently the power expenses was reduced to that extent.

23. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly, the unamortized carrying value is being depreciated / amortized over the remaining useful life of particular assets. The written down value of Fixed Assets, useful life of which was completed as on 1^st April, 2014 have been adjusted (net of Deferred tax), in the opening balance of retained earnings.

24. The Company is primarily engaged in the business of manufacturing and sales of Packaging Products” and there is no other Reportable Segment and hence Accounting Standard 17 “Segment Reporting” issued by ICAI is not applicable is the Company.

25. During the year in pursuance of AS 22 - “Taxes on Income” issued by Institute of Chartered Accountants of India, the Company has provided for Deferred Tax Assets arising on account of depreciation and Items falling u/s 43B of the Income tax Act, 1962 as under

As provided in Para-15 to 18 of the said Standard read with Accounting Standard Interpretation-9 “Virtual Certainty supported with convincing evidence” and considering the prudence, Deferred Tax Assets are not recognized in respect of Carried forward losses and unabsorbed Depreciation as there is no reasonable certainty about availability of future taxable income

26. (a) The Accounting Standard 28 - “Impairment of Assets” issued by Institute of Chartered

Account of India has become applicable to the Company from 1^st April, 2004.

(b) Accordingly Impairment loss, being the amount equal to shortfall of carrying value of Cash Generating Unit as compared to the higher of Value in Use and Net Selling Price is to be ascertained and provided for in the books.

(c) The company has not identified impairment loss in view of Cash Profit earned by the Company consistently during current year as well as in past and projection of future profitability the Management is of the opinion that its assets are not impaired and no provision for impairment loss is to be made in the books.

27. Related Party Disclosure List of Related parties :

1) Major Shareholders

Nirma Chemical Works Pvt. Ltd.

Nirma Industries Pvt. Ltd.

2) Key Managerial Personnel

Mr Shailesh K. Desai : Managing Director (Since August 2015)

Mr Hemal R. Shah : Whole Time Director (Since November 2015)

Mr Krunal G.Shah : Chief Finance Officer

Mr Hemal Sadiwala : Company Secretary (Since December 2015)

Ms. Minakshi Tak : Former Company Secretary (Up to August 2015) Mr Ankit Shah : Former Joint C.E.O (Till May 2015)

28) Enterprises with whom transactions have taken place during the year Nirma Limited Aculife Healthcare Pvt. Ltd.

Hi-scan private limited

29. Previous year''s figures have been regrouped / re-stated / reclassified wherever necessary. Figures in brackets relate to the previous year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

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Mar 31, 2015

1. (a) Andhra Bank Ltd. has filed suit in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and the Company as a guarantor and Recovery officer has demanded Rs 933.34 lacs (net of Recovery already made and including interest). Andhra Bank has also given notice u/s 434 of the Companies Act, 1956 for winding up of the Company Review petition against recovery certificate Dated 19th September, 2013 is filed. (b) The Kalupur Commercial Co.op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable and interest accrued thereon of Rs. 263.07 lacs till 31.03.15 (Previ- ous year Rs 224.62 lacs) against which the company has preferred an appeal and no provision is made in the books.

2. (a) In respect of 10,00,000 15% Cumulative Preference Shares of Rs.100/- each which were redeemable in three equal installments at the end of third, fourth and fifth year from 30th March,1998, 3,33,334 Preference Shares being first installment were redeemed on 30th March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed. (b) The Company has declared and provided in books dividend of Rs. 100 lacs for the year 2000-01 on 666666 15% Redeemable Preference Shares which was subsequently annulled by Board of Directors and members of the Company in Extra Ordinary Meeting held on 26th Oct, 2002.In view of the pending approval from appropriate authority, the Company has not reversed provision of said annulled dividend and also not transferred the said amount to IEPF.

3. The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 200 lacs in respect of other lenders who has initiated actions u/s 138 has settled dues under OTS and necessary withdrawal petition are under process.

4.1 The company has filed the scheme of Arrangement and Compromise with the Financial Institutions/Banks and Shareholders filed on 17/07/08 bearing petition No. 401/2008 and it is approved by majority of Share- holders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is pending before larger bench of the Hon'ble Court of Gujarat for further hearing.

4.2 In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on "Going Concern" basis.

5 The company has not discharged principal liability towards loans and debentures aggregating to Rs. 8591.13 lacs. The company has also not provided interest of Rs. 1206.51 lacs (Previous Year Rs. 1459.76 lacs) on outstanding loans and Debentures which are under settlement for the year ending on 31st March, 2015. Therefore, loss of the year would have been increased by Rs 1206.51 lacs. The accumulated interest not provided for up to 31-03-2015 is Rs. 16052.36 lacs (Previous Year Rs. 17943.30 lacs).

6 The company has been sanctioned credit facilities of Letters of Credit, Overdraft and guarantee against lien of Fixed Deposits. The Company has pledged Fixed Deposits of Rs. 1310.95 lacs (Previous Year Rs. 1316.58 lacs) plus accrued interest thereon for the Letter of Credit, Overdraft facility and Guarantee of Rs. 38.06 lacs, Rs. 1120.02 lacs and Rs. 152.87 lacs respectively as on 31.03.2015. (Prev. Year Rs. 27.74 lacs against Letter of credit Rs. 1162.81 lacs against over draft facility and Rs. 126.03 against Guarantee).

7. Outstanding balances as on 31-03-2015 of Creditors, Debtors, Secured and Unsecured Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

8. The company has in past undertaken major exercise of restructuring and repayment of its old debts and realignment of assets and liabilities to reflect correct picture of its financial statements. In the process, the company has identified and ascertained the status of old legal cases, disputed debtors, receivables and payables, idle and obsolete fixed assets etc. Accordingly, the company has given necessary accounting treatment in the books of accounts which inter alia includes the following:- i) The Company has in earlier year received demand notice for excise duty from Excise department for Rs. 2665.30 lacs. The Company had made provision of excise duty of Rs. 2665.30 lacs And interest of Rs. 2087.59 lacs thereon in books of account and therefore on the basis of legal advice and CESTAT order dated 22/06/2012 the company reversed the said provision and has disclosed the said amount of Rs. 5068.36 lacs as contingent liabilities. The company has paid Rs. 300 lacs on accounts against such liability.

ii) In respect of old disputed debtors against whom legal cases are filed, the company has made provi- sion of Rs. 26.59 lacs for doubtful debts.

9. During the year, Company has entered into one time settlement with some of the lenders resulted into waiver of portion of loan. The Company has settled said loans for Rs. 639.09 lacs against carrying amount of Rs. 1666.67 lacs.

The resultant surplus of Rs. 1027.57 lacs arising on such settlement agreed by the lenders have been credited to Profit & Loss Account by Rs. 77.57 lacs and to Capital Reserve account by Rs. 950 lacs during the year. (Previous Year NIL)

10. (a) During the year there is Exchange Fluctuation loss (net) of Rs 10.66 lacs (Previous Year loss of Rs. 18.74 Lacs) on current account and the same is shown separately.

(b) The Exchange Fluctuation gain (net) on capital Account of Rs. 11.70 lacs is capitalized to cost of Fixed Assets (Previous year loss of Rs. 9.67 lacs)

11. In view of carried forward business losses and depreciation in the books, the company is not liable for Income Tax Liability under section 115JB for Minimum Alternative Tax.

12. In view of the Accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unse- cured Debentures and

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

13. In respect of disputed Income Tax matters of earlier years, the Company has received various orders giving appeal effect, Rectification, Refund and Assessment of set aside matters etc.

14. As permitted by CERC and IERC (Regulatory authorities) the company has partially opted for purchase of power through approved Power Exchange which has resulted into gain of Rs 10.26 lacs (Previous Year RS.20.61 lacs) and consequently the power expenses was reduced to that extent.

15. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly, the unamortised carrying value is being depreciated / amortised over the remaining useful life of particular assets. The written down value of Fixed Assets, useful life of which was completed as on 1st April, 2014 have been adjusted (net of Deferred tax), in the opening balance of retained earnings.

16. The Annual Accounts of the company for the year 2014-15 have been approved by the board of directors in its meeting held on 26.05.2015 and statutory auditors have also given their audit report on the said accounts. The accounts were published and also filed with stock exchange.

After careful consideration of various factors affecting financial statements, far reaching impact of recent changes in the Companies Act 2013( the "Act"), changes in the Basis of depreciation and its impact on fixed assets, nature & use of assets, actual capacity utilization of plant etc. the management has decided to recompute the useful life of its major specified plant and machineries.

The MCA vide its notification dt. 29.08.2014 has also given option to adopt useful life other than what is prescribed in Schedule II of the Act, on the basis of report of technical valuer. The company has according got carried out physical verification of its major specified plant & machinery and its useful life.

On the basis of useful life determined and valuation report obtained from Government approved valuer, the company has reworked the depreciation on the basis of Useful life of respective assets for the current year and also amount to be charged to Retained earnings as provided in the companies act.

As per revised computation, the depreciation to be charged to Statement of Profit and Loss is worked out at Rs 1589.94 lacs and depreciation to be charged to retained earnings is worked out at Rs.377.51 lacs consequentially charge for the depreciation is lower by Rs 741.96 lacs and charge to retained earning has reduced by Rs 1132.34 lacs and deferred tax assets is reduced by Rs 579.16 lacs as compared to earlier audited accounts.

17. Previous year's figures have been regrouped / re-stated / reclassified wherever necessary. Figures in brackets relate to the previous year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

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Mar 31, 2014

1. Contingent Liabilities :

Sr. Particulars Amounts (Rs. in lacs) No. 2013-2014 2012-2013

a Dividend on 666666 15% Redeemable 1250.00 1150.00 Cumulative Preference Shares till date (Note No.3 below)

b Interest in loans & debentures 17943.30 16483.54 (Note No. 6 below)

c(i) Corporate guarantee given to the 400.00 400.00 Banks for term loan of Rs 400.00 Lacs. (Note No : 2 (a) below)

(ii) Bank Guarantee given to GEB against 126.03 126.03 security of Bank Deposits

d Suit filed by The Kalupar Comm. 274.62 240.90 Co.Op. Bank Ltd in respect of bills payable (including interest). (Note No : 2 (b) below)

e Claims against the company not 293.42 293.42 acknowledged as debts. Excise authorities have issued show-cause notices for various credits availed as well as rejecting the claims of the company which the company has disputed and no provision is made in the books.

f Estimated amount of contracts 5.39 5.30 remaining to be executed on Capital Account (Net of Advances)

g Excise proceeding in respect 4885.19 Nil the order dtd.30/12/2005 Including interest & penalty (see note No.9 (i) below)

h Pending case for proceeding 200.00 200.00 U/S 138 of Negotiable Instrument Act (Note No : 4 below)

2. The Company is occupying premises at Mumbai beyond the period of Leave & License agreement to secure its loans and advances given to the owner of premises. There are counter suits for vacancy of premises and recovery of Loans and Advances along with interest thereon are pending in the Courts between the Company and owner of premises. Pending litigation, the Company has neither provided for Rent since May 2002 in its books nor interest on Loans and Advances. On final outcome of the suits, necessary accounting entries will be passed for rent payable and interest receivable, if any on advances given by the Company.

2. (a) Andhra Bank Ltd. has filed suit in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and the Company as a guarantor and Recovery officer has demanded Rs 933.34 lacs (net of Recovery already made and including interest). Andhra Bank has also given notice u/s 434 of the Companies Act, 1956 for winding up of the Company.

(b) The Kalupur Commercial Co.op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable and interest accrued thereon of Rs. 224.62 lacs till 31.03.14 (Previous year Rs 190.89 lacs) against which the company has preferred an appeal and no provision is made in the books.

3. (a) In respect of 10,00,000 15% Cumulative Preference Shares of Rs.100/- each which were redeemable in three equal installments at the end of third, fourth and fifth year from 30th March,1998, 3,33,334 Preference Shares being first installment were redeemed on 30th March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed.

(b) The Company has declared and provided in books dividend of Rs. 100 lacs for the year 2000-01 on 666666 15% Redeemable Preference Shares which was subsequently annulled by Board of Directors and members of the Company in Extra Ordinary Meeting held on 26th Oct, 2002.In view of the pending approval from appropriate authority, the Company has not reversed provision of said dividend annulled and also not transferred the said amount to IEPF.

4. The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 200 lacs in respect of other lenders who has initiated actions u/s 138 has settled dues under OTS and necessary withdrawal petition are under process.

5.1 The company has filed the scheme of Arrangement and Compromise with the Financial Institutions/Banks and Shareholders filed on 17/07/2008 bearing petition No. 401/2008 and it is approved by majority of Shareholders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is pending before the Hon''ble Court of Gujarat for further hearing.

5.2 In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on "Going Concern" basis.

6 The company has not discharged principal liability towards loans and debentures aggregating to Rs. 10257.79 lacs. The company has also not provided interest of Rs. 1459.76 lacs (Previous Year Rs. 1460.59 lacs) on outstanding loans and Debentures which are under settlement for the year ending on 31st March, 2014. Therefore, profit of the year would have been reduced by Rs 1459.76 lacs. The accumulated interest not provided for up to 31-03-2014 is Rs. 17943.30 lacs (Previous Year Rs. 16483.54 lacs).

7 The company has been sanctioned credit facilities of Letters of Credit, Overdraft and guarantee against lien of Fixed Deposits. The Company has pledged Fixed Deposits of Rs. 1316.59 lacs (Previous Year Rs.887.50 lacs) plus accrued interest thereon for the Letter of Credit, Overdraft facility and Guarantee of Rs. 27.74 lacs, Rs. 1162.81 lacs and Rs. 126.04 lacs respectively as on 31.03.2014.(Prev. Year Rs. 88.29 lacs against Letter of credit, Rs. 673.17 lacs against over draft facility and Rs. 126.04 lacs against Guarantee ).

8. Outstanding balances as on 31-03-2014 of Creditors, Debtors, Secured and Unsecured Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

9. The company has in recent past undertaken major exercise of restructuring and repayment of its old debts and realignment of assets and liabilities to reflect correct picture of its financial statements. In the process, the company has identified and ascertained the status of old legal cases, disputed debtors, receivables and payables, idle and obsolete fixed assets etc. Accordingly, the company has given necessary accounting treatment in the books of accounts which inter alia includes the following:-

i) The company has made provision for excise duty for Rs.2665.30 lacs in respect of demand notice received from excise department in earlier year. The company has also made provision for interest liabilities of Rs.2087.59 lacs on such excise duty from year to year. The company has been legally advised by consultants and experts that provision for excise duty is no longer required in view of pronouncement of CESTAT order dated 22nd June 2012 and accordingly company has reversed the provision of excise duty liability and interest thereon and treated the same as contingent liability. However "on account" payment of Rs. 300 lacs against such liability is reported under "Loans & Advances".

ii) The company has ascertained impaired assets after examining technical aspects and assessment thereof and passed accounting entries for loss arising on impaired assets aggregating to Rs.130.05 lacs.(previous year 200.74 lacs)

iii) In respect of old disputed debtors against whom legal cases are filed, the company has made provision of Rs. 26.59 lacs for doubtful debts.

iv) Other old and stagnant Receivables and Payables are written back amounting to Rs. 7.01 lacs (Net).

v) The company has recognized income of Rs. 194.41 lacs plus interest thereon Rs. 52.54 lacs in respect of settlement of the very old disputed insurance claim awarded by the Arbitration in favour of the company.

10. (a) During the year there is Exchange Fluctuation loss (net) of Rs 18.74 lacs (Previous Year loss of Rs. 3.53 Lacs) on current account and the same is shown separately.

(b) The Exchange Fluctuation loss (net) on capital Account of Rs. 9.67 lacs is capitalized to cost of Fixed Assets (Previous year loss of Rs. 2.06 lacs)

11. In view of carried forward business losses and depreciation in the books, the company is not liable for Income Tax Liability under section 115JB for Minimum Alternative Tax.

12. In view of the Accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unsecured Debentures and

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

13. In respect of disputed Income Tax matters of earlier years, the Company has received various orders giving appeal effect, Rectification, Refund and Assessment of set aside matters etc. The interest of Rs. 129.95 lacs arising on refund is accounted for during the year.

14. As permitted by CERC and IERC (Regulatory authorities) the company has partially opted for purchase of power through approved Power Exchange which has resulted into gain of Rs 20.61 lacs and consequently the power expenses was reduced to that extent.

15. Previous year''s figures have been regrouped / re-stated / reclassified wherever necessary. Figures in brackets relate to the previous year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

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Mar 31, 2013

1. Contingent Liabilities :

Sr. Amounts (Rs. in lacs) No. Particulars 2012-2013 2011-2012

1 Dividend on 15% Redeemable Cumulative 1150.00 1050.00 Preference Shares till date (Note No.3 below)

2 Additional interest etc. on loans 16483.54 15022.95

3 (i) Corporate guarantee given to the Banks for term loan of 400.00 400.00

Rs 400.00 Lacs. (Note No : 2 (a) )

Excise authorities have issued show-cause notices for various credits availed as well as rejecting the claims of the company which the company has disputed and no provision is made in the books.

2. The Company has availed benefit under EPCG scheme for import of Capital goods which were purchased in the year 2011-12 pertaining to Packaging Division at concessional rate. As a result the Company has to undertake additional export obligation over and above average export performed in last 3 years. The liability to pay back concessional duty of Rs. 80.18 lacs with interest may arise in future if the export obligation is not met with within prescribed period.

3. The Company is occupying premises at Mumbai beyond the period of Leave & License agreement to secure its loans and advances given to the owner of premises. There are counter suits for vacancy of premises and recovery of Loans and Advances along with interest thereon are pending in the Courts between the Company and owner of premises. Pending litigation, the Company has neither provided for Rent since May 2002 in its books nor interest on Loans and Advances, On final outcome of the suits, necessary accounting entries will be passed for rent payable and interest receivable, if any on advances given by the Company.

2.(a) Andhra Bank Ltd. has filed suit for recovery of Rs. 564.89 lacs (including Interest) in Debt Recovery Tribu- nal against East West Polyard Ltd. as Principal Debtor and against the company as being a guarantor. Andhra Bank has given notice u/s 434 of the Companies Act, 1956 for winding up of the Company.

(b) The Kalupur Commercial Co.op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable and interest accrued thereon of Rs.190.89 lacs till 31.03.13 (P.Y Rs 161.31 lacs) against which the company has preferred an appeal and no provision is made in the books.

3.(a) 10,00,000 15% Cumulative Preference Shares of Rs.100/- each issued and which were redeemable in three equal installments at the end of third, fourth and fifth year from 30th March, 1998. 3,33,334 Preference Shares being first installment were redeemed on 30th March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed.

(b) The Company has declared and provided in books dividend of Rs. 100 lacs for the year 2000-01 on 666666 15% Redeemable Preference Share which was subsequently annulled by Board of Directors and members of the Company in Extra Ordinary Meeting held on 26th Oct, 2002.In view of the pending approval from appropriate authority, the Company has not reversed provision as dividend was annulled. Therefore, it was not required to transfer the said amount to IEPF.

4.1 The lenders recalled their loans and debentures upon company''s failure to pay its dues on time. As per recall notices, repayment liability of principal amount is Rs. 10257.80 lacs, accumulated interest till 31.03.13 is Rs.16483.54 lacs (previous year Rs. 15022.95) and additional interest etc. for the F.Y. 2012-13 is Rs. 1460.59 lacs (previous year Rs. 1465.52 lacs).

4.2 The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 4536.68 lacs out of which the debt of Rs. 4336.68 lacs has settled under OTS scheme.

4.3 The company has filed the scheme of Arrangement and Compromise with the Financial Institutions/Banks and Shareholders filed on 17/07/08 bearing petition No. 401/2008 and it is approved by majority of Share- holders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is pending before the Hon''ble Court of Gujarat for further hearing.

4.4 During the year, Company has entered into settlement with some of the lenders resulted into waiver of portion of outstanding loans. The Company has settled said loans for Rs. 5144.70 lacs as against carrying amount of Rs. 17666.48 lacs. The resultant surplus of Rs. 12521.78 lacs arising on such settlement has been credited to the Capital Reserve.

5 In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on "Going Concern" basis.

6 The company has not provided interest of Rs. 1460.59 lacs (Previous Year Rs. 1465.52 lacs) on outstanding borrowings and Debentures which are under settlement for the year ending on 31st March 2013. Therefore, loss of the year would have been more by Rs 1460.59 lacs. The accumulated interest not provided for up to 31-03-2013 is Rs. 16483.54 lacs (Previous Year Rs. 15022.95 lacs)

7 The company has been sanctioned credit facilities of Letters of Credit, Overdraft and guarantee against lien of Fixed Deposits. The Company has pledged F.D. of Rs. 887.50 lacs for the Letter of Credit, Overdraft facility and Guarantee of Rs. 88.29 lacs, Rs. 673.18 lacs and Rs. 126.03 Lacs respectively up to 31.03.2013.(Prev. Year Rs. 15.00 lacs against L/C, Rs. 1214.64 lacs against over draft facility and Rs.47.59 against Guarantee )

8. The Company, at the instance of its Board of Directors, undertaken an exercise under supervision and with help of professional firm to evaluate its Fixed Assets on the basis of Useful life, carrying value and need for the provision of depreciation as per the requirements of Sch. XIV of the Companies Act, 1956 and other related aspects. The company has received report from the said firm after examining technical aspects of observation, suggestion and recommendation contained in the said report, it has passed necessary accounting entries for loss arising on disposal, discarded and / or impaired assets aggregating to Rs.1074.98 lacs.

9. Outstanding balances as on 31-03-2013 of Creditors, Debtors, Secured and Unsecured Loans and Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

10. (a) During the year there is net Exchange Fluctuation loss of Rs 3.53 lacs (Previous Year loss of Rs. 6.94 Lacs) on current account & the same is shown separately.

(b) The Exchange Fluctuation loss on capital Account of Rs.2.06 lacs is capitalized to cost of Fixed Assets (Previous year gain of Rs. 11.03 lacs )

11. In view of carried forward business losses and depreciation in the books, the company is not liable for Income Tax Liability under section 115JB of Minimum Alternative Tax.

12. In view of the Accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unse- cured Debentures and

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

13. In respect of disputed Income Tax matters of earlier years, the Company has received various orders giving appeal effect, Rectification, Refund, Assessment of set aside matters etc. The interest of Rs. 121.37 lacs arising on refund is accounted for during the year.

14. In earlier years the company has accounted for insurance claim receivable in respect of fire took place in the factory premises on 25th April 1998 which was under dispute. After rigorous follow up and negotiation with insurance company Rs.186.65 lacs, being amount identified as irrecoverable is written off during the year.

15 The Interest expenses include provision for the interest of Rs. 132.29 lacs on disputed Excise Duty liability provided during the year. The Company has already made provision for excise duty liability of Rs. 4752.89 lacs in the respective years

16. During the year the company has disposed of all balance assets of Karannagar Unit viz Land, Building, Electrical installation, Furniture & fixtures etc. , the said unit was not used since 8 years.

17. Previous year figures have been regrouped / re-stated / reclassified where necessary. Figures in brackets relate to the previous year unless otherwise stated. Previous year figures in notes forming part of accounts are recalculated to bring the figures in line with relevance in the matter.

---

Mar 31, 2012

1. Contingent Liabilities :

Sr. No. Particulars Amounts (Rs. in lacs) 2011-2012 2010-11

1 Dividend on 15% Redeemable Cumulative 1050.00 950.00 Preference Shares till date (Note No.3 below)

2 Additional interest, Penal interest and 3816.27 5053.65 liquidated damages on loans

3 (i) Corporate guarantee given to the Banks for term loan of Rs 400.00 Lacs each. (Note No : 2 (a) 800.00 800.00

(ii) Bank Gurantee given to GEB against security of Bank Deposits 46.74 46.74

4 Suit filed by The Kalupar Comm. 211.31 185.36 Co.Op. Bank Ltd in respect of bills payable. (Note No : 2 (b)

5. Claims against the company not acknowledged as debts. 293.42 161.98 Excise authorities have issued show-cause notices for various credits availed as well as rejecting the claims of the company which the company has disputed and no provision is made in the books.

6 Estimated amount of contracts remaining to be executed 14.77 387.82 on Capital Account (Net of Advances)

7. The Company has availed benefit under EPCG scheme for import of Capital goods pertaining to Packaging Division at concessional rate. As a result the Company has to undertake additional export obligation over and above average export performed in last 3 years. The liability to pay back concessional duty of Rs. 80.18 lacs with interest may arise in future if the export obligation is not met with within prescribed period.

8. The Company is occupying premises at Mumbai beyond the period of Leave & License agreement to secure its loans and advances given to the owner of premises. There are counter suits for vacancy of premises and recovery of Loans and Advances along with interest thereon are pending in the Courts between the Company and owner of premises. Pending litigation, the Company has neither provided for Rent since May 2002 in its books nor interest on Loans and Advances, On final outcome of the suits, necessary accounting entries will be passed for provision of rent and interest on advances given by the Company.

2.(a) Andhra Bank Ltd. has filed suit for recovery of Rs. 564.89 lacs (including Interest) in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and against the Company as being a guarantor. Andhra Bank has given notice u/s 434 of the Companies Act, 1956 for winding up of the Company.

(b) The Kalupur Commercial Co.op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable and interest accrued thereon of Rs.161.31 lacs till 31.03.12 (P.Y Rs 135.36 lacs) against which the company has preferred an appeal and no provision is made in the books.

3.(a) 10,00,000 15% Cumulative Preference Shares of Rs.100/- each issued and which were redeemable in three equal installments at the end of third, fourth and fifth year from 30th March,1998. 3,33,334 Preference Shares being first installment were redeemed on 30th March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed.

(b) The Company has declared and provided in books dividend of Rs. 100 lacs for the year 2000-01 on 666666 15% Redeemable Preference Share which was subsequently annulled by Board of Directors and members of the Company in Extra Ordinary Meeting held on 26th Oct, 2002.ln view of the pending approval from appropriate authority, the Company has neither reversed the provision nor transferred the amount to the Investors' Education & Protection Fund.

4.1 The financial institutions, banks and other parties recalled their loans and debentures upon company's failure to pay its dues on time. As per recall notices, repayment liability of principal amount is Rs. 28209.20 lacs, accumulated interest till 31.03.12 is Rs.32025.47 lacs (previous year Rs. 47963.00 lacs) and additional interest, penalty & liquidated damages for the F.Y. 2011-12 is Rs. 3816.27 lacs (previous year Rs. 5053.65 lacs). The lenders have filed recovery cases with Debt Recovery Tribunal and two of the lenders have filed winding up petitions in Gujarat High Court, which have been admitted.

4.2 The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 4536.68 lacs (previous year Rs. 4536.68 lacs).

4.3 The company has filed the scheme of Arrangement and Compromise with the Financial Institutions/ Banks and Shareholders filed on 17/07/2008 bearing petition No. 401/2008 and it is approved by majority of Shareholders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is pending before the Hon'ble Court of Gujarat for further hearing.

4.4 During the year, Company has entered into settlement with some of the lenders which has resulted into waiver of a portion of outstanding loans. The Company has settled said loans for Rs.2921.11 lacs as against carrying amount of Rs.8749.25 lacs. The resultant surplus of Rs.5828.14 lacs arising on such settlement agreed by the lenders has been credited to Profit & Loss Account by Rs.84.09 lacs and to Capital Reserve Account by Rs.5744.05 lacs on the basis of the purpose for which the loans were raised or where the complete details were not available on the basis of their actual utilization of the fund either for working capital or for acquisition of assets. Such treatment is in accordance with AS 9 - "Revenue Recognition" wherein the definition of "Revenue" excludes similar transactions and the same interpretation is also supported by various judicial pronouncements under Tax Laws. However in one case expert advisory committee of ICAI has taken a contrary view.

5 In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on "Going Concern" basis. This will hold good subject to receipt of required support from the Lenders, Banks, Financial Institutions and other Creditors and in case the going concern basis is vitiated, necessary adjustment will be required in the value of Assets and Liabilities.

6 The company has not provided interest of Rs. 3816.27 lacs (Previous Year Rs. 5053.65 lacs) on borrowings and Debentures for the year ending on 31st March 2012. Therefore, profit of the year would have been lower by Rs 3816.27 lacs. Accumulated interest not provided for upto 31-03-2012 is Rs. 51779.-27 lacs (Previous Year Rs. 47963.00 lacs).

7 (a) The Company has been sanctioned credit facilities of Letters of Credit, Overdraft and Guarantee against lien of Fixed Deposits. The Company has pledged F.D. for the Letter of Credit, Overdraft facility and Guarantee of Rs. 15.00 lacs, Rs. 1214.64 lacs and Rs. 47.59 Lacs respectively up to 31.03.2012.(Previous Year Rs. 99.49 lacs against L/C, Rs. 447.20 lacs against over draft facility and Rs.47.59 against Guarantee).

(b) The Company has pledged fixed deposit of Rs 1.00 Lacs with Sales Tax Department - Pondicherry.

8 During the year the Company, at the instance of its Board of Directors, undertaken an exercise to evaluate its Fixed Assets on the basis of Useful life, carrying value and need for the provision of depreciation as per the requirements of Sch. XIV of the Companies Act, 1956 and other related aspects. The said exercise has been carried out under the supervision and assistance of an expert professional Accounting Firm.

The Company has received Appraisal Report from the said Firm, The Management is examining the technical aspects of the observations, suggestions and recommendations contained in the said report and will give necessary accounting treatment on final evaluation of all related aspects and . issues

9. Outstanding balances as on 31-03-2012 of Creditors, Debtors, Secured and Unsecured Loans and Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

10 The Company has made Investment of Rs. 13.06 Lacs into equity shares and Rs.18.60 Lacs in Share Application Money in Shree Rama (Mauritius) Limited its wholly owned subsidiary company.

As required in Accounting Standard 13 "Accounting for Investment" issued by ICAI, the company has already provided for diminution in the value of investment of the shares and share application money in earlier years.

11. (a) During the year there is net Exchange Fluctuation loss of Rs 6.94 lacs (Previous Year loss of Rs. 12.18 Lacs) on current account & the same is shown separately.

(b) The Exchange Fluctuation loss on Capital Account of Rs. 11.03 lacs is capitalized to cost of Fixed Assets (Previous year gain of Rs. 7.05 lacs )

12 In view of carried forward business losses and depreciation in the books the company is not liable for Income Tax Liability under section 115JB of Minimum Alternative Tax

13. In view of the Accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unsecured Debentures and

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

14. The Company has received orders from ITAT from time to time in respect of various Appeals of past years. In view of favorable appellate orders and on the basis of working given by Professional Expert. The Company will not be required to pay liabilities for Tax, Interest, Penalty etc. for which it has already made provision for the tax liabilities, interest, penalty etc. amounting to Rs. 1670.04 lacs In the books.

15. Operating Lease

At the end of the year, the Company has taken certain machineries on rental basis for the period of 3 years on yearly rent of Rs. 3,60,000.

16. The Company is primarily engaged in the business of manufacture & sale of "Packaging Products and "Diamond". The Company has identified & reported two primary business segments namely "Packaging" & "Diamond" in the context of Accounting Standard 17 on "Segment Reporting" taking into account nature of products and service, the differing risks & returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the Segment.

17 (a) The Accounting Standard 28 - "Impairment of Assets" issued by Institute of Chartered Accountants of India has become applicable to the Company from 1st April, 2004.

(b) In view of profit earned during current year as well as in past consistently and projection of future profitability, the Management is of the opinion that its assets are not impaired and no provision for impairment loss is to be made in the books.

18 Derivative instruments and Unhedged Foreign Currency Exposure:

1. Derivative instruments outstanding: NIL

2. Unhedged Foreign Currency Exposure:

19 Previous year figures have been regrouped / re-stated / reclassified where necessary. Figures in brackets relate to the previous year unless otherwise stated.

---

Mar 31, 2011

1. Contingent Liabilities :

Sr. Amounts (Rs. in lacs)

No. Particulars 2010-2011 2009-2010

1 (A) Dividend on 15% Redeemable Cumulative 950.00 850.00 Preference Shares till date (See Note 3 below)

(B) Interest on Unpaid Dividend (Till Date) 940.50 750.50

2 Additional interest, Penal interest and 5053.65 5278.05 liquidated damages on loans

3 (i) Corporate guarantee given to the Banks for term loan of 800.00 800.00 Rs 400.00 Lacs each. [Note No : 2 (a)]

(ii) Bank Gurantee given to GEB against security of Bank Deposits 46.74 0.00

4. Suit filed by The Kalupar Comm. Co.Op. Bank Ltd in 185.36 162.60 respect of bills payable. [Note No : 2 (b)]

5. (A) Claims against the company not acknowledged as debts. 161.98 178.33

Excise authorities have issued show-cause notices for various credits availed as well as rejecting the claims of the company which the company has disputed and no provision is made in the books.

(B) Interest on above demands 0.00 111.51

6 Estimated amount of contracts remaining to be executed on Capital Account (Net of Advances) 387.82 65.33

7 Estimated amount of consultancy charges in respect of Diamond Division 0.00 70.00

2. (a) Andhra Bank Ltd. has filed suit for recovery of Rs. 564.89 lacs (including Interest) in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and against the company as being a guarantor. Andhra Bank has given notice u/s 434 of the Companies Act, 1956 for winding up of the Shree Rama Multi - Tech Ltd.

(b) The Kalupur Commercial Co.op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable and interest accrued thereon of Rs.135.36 lacs till 31.03.11 (P.Y Rs 112.60 lacs) against which the company has preferred an appeal and no provision is made in the books.

3. (a) 10,00,000 15% Cumulative Preference Shares of Rs.100/- each issued to IDBI were redeemable in three equal installments at the end of third, fourth and fifth year from 301h March,1998. 3,33,334 Preference Shares being first installment were redeemed on 30,h March, 2001. The remaining 6,66,666 Preference Shares are yet to be redeemed.

(b) The Company has not transferred Unpaid Dividend of Rs.100 Lacs for the year 2000-01 on 666666 15% Redeemable Preference Share to separate designated Account as required u/s 205A of the Companies Act, 1956 ("the Act") and subsequently not transferred to Investor Education & Protection fund as per sec. 205 of the Act. The company has also not paid Dividend Distribution Tax of Rs. 10,19,999/- on Preference share Dividend for the year 2000-01.

(c) As per the terms of the Issue the company has to pay interest on unpaid / contingent dividend @ 19% p.a. The liability for such interest whould be Rs. 940.50 lacs (Previous Year Rs. 750.50 Lacs).

4.1 The financial institutions, banks and other parties recalled their loans and debentures upon company's failure to pay its dues on time. As per recall notices, repayment liability of principal amount is Rs.369.58 crores, accumulated interest till 31.03.11 is Rs.479.63 crores (previous year Rs.429.09 crores) and additional interest, penalty & liquidated damages for the F.Y. 2010-11 is Rs.50.54 crores (previous year Rs.52.78 crores). The lenders have filed recovery cases with Debt Recovery Tribunal and two of the lenders have filed winding up petitions in Gujarat High Court, which have been admitted.

4.2 The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 4536.68 lacs (previous year Rs. 4536.68 lacs).

4.3 The company has filed the scheme of Arrangement and Compromise with the Financial Institutions/Banks and Shareholders filed on 17/07/08 bearing petition No. 401/2008 and it is approved by majority of Shareholders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is pending before the Hon'ble Court of Gujarat for further hearing.

4.4 During the year, the company has settled debt with its lender - IDBI and the difference between the actual recorded liability & settled amount of Rs. 568.33 lacs credited to Profit & Loss account under the head "Extra Ordinary items".

5 In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on "Going Concern" basis. This will hold good subject to receipt of required support from the Lenders, Banks, Financial Institutions and other Creditors and in case the going concern basis is vitiated, necessary adjustment will be required in the value of Assets and Liabilities.

6 The company has not provided interest of Rs. 50.54 Crores (Previous Year Rs.52.78 Crores) on borrowings and Debentures for the year ending on 31st March 2011. Therefore, profit of the year would have been lower by Rs 50.54 Crores. Accumulated interest not provided for upto 31-03-2011 is Rs.479.53 Crores (Previous Year Rs.429.09 Crores)

7 (a) The company has been sanctioned credit facilities of Letters of Credit, Overdrafts and guarantees against lien of Fixed Deposits. The Company has utilized the Letter of Credit and overdraft facility of Rs. 99.49 lacs and Rs. 447.20 lacs up to 31.03.2011.(Prev. Year Rs. 480.35 lacs)

(b) The Company has pledged fixed deposit of Rs 1.00 Lacs with Sales Tax Department - Pondicherry.

8 During the year the Company, at the instance of its Board of Directors, undertaken an exercise to evaluate its Fixed Assets in terms of their refined useful life, carrying value and need for the provision of depreciation as the requirements of Sen. XIV of the Companies Act, 1956 and other related aspects. The said exercise has been carried out under the supervision and assistance of an expert professional Accounting Firm.

Considering the Interim Appraisal Report received from the said Firm, the depreciation in terms of the requirements of the Sch. XIV is worked out to Rs. 2324.94 Lacs after netting of excess depreciation of Rs. 89.07 lacs provided in earlier years and the same has been provided in the books.

9. Outstanding balances as on 31-03-2011 of Creditors, Debtors, Secured and Unsecured Loans and Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

10. The Company has made Investment of Rs. 13.06 Lacs into equity shares and Rs. 18.60 Lacs in Share Application Money in Shree Rama (Mauritius) Limited its wholly owned subsidiary company.

As required in Accounting Standard 13 "Accounting for Investment" issued by ICAI, the company has already provided for diminution in the value of investment of the shares and share application money in earlier years.

11. (a) During the year there is net Exchange Fluctuation loss of Rs 12.18 lacs (Previous Year gain of Rs.395.26 Lacs) on current account & the same is shown separately.

(b) The Exchange Fluctuation loss on capital Account of Rs.7.05 lacs is capitalized to cost of Fixed Assets (Previous year gain of Rs. 4.11 lacs )

12. In view of carried forward business losses and depreciation in the books the company is not liable for Income Tax Liability under section 115JB of Minimum Alternative Tax

13. In view of the Accumulated loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unsecured Debentures. &

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

The Computation of Net Profits under section 349 of the Companies Act, 1956, for directors remuneration has not been enumerated since no commission is paid to the Directors. Remuneration paid to Directors is as per Schedule XIII of the Companies Act, 1956.

[b] Shri Sharad C. Jariwala was re-appointed as Managing Director for three years w.e.f 27,h June, 2009 and remuneration is paid to him as per the terms approved by the company at Annual General Meetings on 19th September, 2009 for which the company has received approval from Central Government on 12th March, 2011.

16. Disclosure pursuant to Accounting Standard - 15 [Revised] 'Employee Benefits':

A The Company has, with effect from 1st April, 2007, adopted Accounting Standard 15, Employee Benefits [revised 2005] [the 'revised AS 15']. In accordance with the transitional provisions governing gratuity valuation - defined benefit plan and leave encashment liability - long term liability based on actuarial valuation is as follows :

B Defined benefit plan and long term employment benefit:

a General description:

Gratuity (Defined benefit plan):

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

b Leave wages (Long term employment benefit) :

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

20. The Company is primarily engaged in the business of manufacture & sale of "Packaging Products and Diamond". The Company has identified & reported two primary business segments namely "Packaging" & "Diamond" in the context of Accounting Standard 17 on "Segment Reporting" taking into account nature of products and service, the differing risks & returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the Segment.

21. (a) The Accounting Standard 28 - "Impairment of Assets" issued by Institute of Chartered Accountants of India has become applicable to the Company from 1st April, 2004.

(b) In view of profit earned during current year as well as in past consistently and projection of future profitability, the Management is of the opinion that its assets are not impaired and no provision for impairment loss is to be made in the books.

23. Related Party Disclosures:

The list of related parties as identified by the Management is as under.

[I] List of related parties and its relationships.

Party Relationship

A) Shree Rama (Mauritius) Limited Subsidiary Company

B) Key Management Personnel

Mr. R.S. Patel Chairman & Director

Mr. Sharad C. Jariwala Managing Director

C) R.S. Patel & Co. Firm in which director is interested

24. Figures less than Rs. 500 have been shown at actual, wherever statutorily required to be disclosed, as the figures have been rounded off to the nearest thousands.

25. Previous year figures have been regrouped / re-stated / reclassified where necessary. Figures in brackets relate to the previous year unless otherwise stated.

26. Information required under Para 3 & 4 of Part II of Schedule VI to the Companies Act, 1956: (A) Licensed and Installed capacity and Actual production:

(i) Licensed Capacity

New Industrial Policy exempts company's products from licensing requirements.

(ii) Installed Capacity :

(Optimum Production Capacity per annum as certified by management on the basis of standard product mix and relied upon by the auditors being a technical matter)

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Mar 31, 2010

1. Contingent Liabilities :

Sr. Amounts (Rs. in lacs)

No. Particulars 2009-2010 2008-2009

1 (A) Dividend on 15% Redeemable Cumulative 850.00 750.00

Preference Shares till date (See Note 3 below) (B) Interest on Unpaid Dividend (Till Date) 1234.11 893.77

2 Additional interest, Penal interest and 5278.05 5325.09 liquidated damages on loans

3 Corporate guarantee given for East West Polyart Limited to IDBI Bank Ltd & Andhra bank for term loan of

Rs 400.00 Lacs each. [Note No : 2 (a)] 800.00 800.00

4. Suit filed by The Kalupar Comm. Co.Op. Bank Ltd in

respect of bills payable. [Note No : 2 (b)] 162.60 142.63

5. (A) Claims against the company not acknowledged as debts.

Excise & Service Tax authorities have issued show-cause 178.33 64.04

notices for various credits availed as well as rejecting the claims of the company which the company has disputed and no provision is made in the books.

(B) Interest on above demands 111.51 88.11

6 Estimated amount of contracts remaining to be executed on

Capital Account (Net of Advances) 65.33 20.95

7 Estimated amount of consultancy charges in respect of

Diamond Division 70.00 0.00

2. (a) Andhra Bank Ltd. has filed suit for recovery of Rs. 564.89 lacs (including Interest) in Debt Recovery Tribunal against East West Polyart Ltd. as Principal Debtor and against the company as being a guarantor. Andhra Bank has given notice u/s 434 of the Companies Act, 1956 for winding up of the Shree Rama Multi - Tech Ltd. (b) The Kalupur Commercial Co.op. Bank (KCCB) has filed a suit against the company for recovery of Rs.50 lacs towards Bills Payable & interest accrued thereon of Rs.112.60 lacs till 31.03.10 (P.Y Rs 92.63 lacs) against which the company has preferred an appeal and no provision is made in the books.

3. (a) 10,00,000 15% Cumulative Preference Shares of Rs.100/- each issued to IDBI were redeemable in three equal installments at the end of third, fourth and fifth year from 30m March,1998. 3,33,334 Preference Shares being first installment were redeemed on 30lh March, 2001. The remaining 6,66,666 Preference Shares are yef to be redeemed.

(b) The Company has not transferred Unpaid Dividend of Rs.100 Lacs for the year 2000-01 on 666666 15% Redeemable Preference Share to separate designated Account as required u/s 205A of the Companies Act, 1956 ("the Act") and subsequently not transferred to Investor Education & Protection fund as per sec. 205 of the Act. The company has also not paid Dividend Distribution Tax of Rs. 10,19,999/- on Preference share Dividend for the year 2000-01.

(c) The company has agreed to pay interest on unpaid / contingent dividend @ 19% p.a. The liability for such interest would be Rs. 1234.11 lacs (Previous Year Rs. 893.77 Lacs)

4. The company has availed benefit of concessional custom duty on machineries imported under Export Promotion Capital Goods scheme (EPCG) during 1998-99 to 2001-02. The companys export obligation was revised and refixed to Rs. 444.57 crores. The company has received order of Jt. Director of Foreign Trade Dt. 02/06/10 discharging the company from obligations on fulfillment of export obligations. The Company has provided for the probable liability of (i) Custom Duty (ii) Interest there on as well as (iii) Depreciation on Custom Duty capitalized to cost of assets in earlier years. Now on discharge of export obligation reversal entries giving appropriate effects in books have been passed.

5.1 The financial institutions and banks recalled their loans and debentures upon companys failure to pay its dues on time. As per recall notices, repayment liability of principal amount is Rs.377.91 crores, accumulated interest till 31.03.10 is Rs.429.09 crores (previous year Rs.376.31 crores) and additional interest, penalty & liquidated damages till 31.03.10 is Rs.52.78 crores (previous year Rs.53.25 crores). The lenders have filed recovery cases with Debt Recovery Tribunal and two of the lenders have filed winding up petitions in Gujarat High Court, which have been admitted.

5.2 The lenders holding post-dated cheques have initiated action u/s. 138 of the Negotiable Instruments Act, 1881 for Rs. 4536.68 lacs (previous year Rs. 4536.68 lacs).

5.3 The scheme of Arrangement and Compromise with the Financial Institutions/Banks and Shareholders filed on 17/07/08 bearing petition No. 401/2008 and it is approved by majority of Shareholders and lenders in the meeting held on 27/08/2008 and 30/08/2008 respectively. The said scheme is pending before the Honble Court of Gujarat for further hearing.

6. In expectation of a positive outcome of settlement and compromise with lenders referred to above, the accounts have been prepared on "Going Concern" basis. This will hold good subject to receipt of required support from the Lenders, Banks, Financial Institutions and other Creditors and in case the going concern basis is vitiated, necessary adjustment will be required in the value of Assets and Liabilities.

7. The company has not provided interest of Rs. 52.78 Crores (Previous Year Rs.52.95 Crores) on borrowings and Debentures for the year ending on 319March 2010. Therefore, losses of the year are lower by Rs 52.78 Crores. Accumulated interest not provided for upto 31-03-2010 is Rs.429.09 Crores (Previous Year Rs.376.31 Crores)

8. (a) The company has been sanctioned credit facilities of Letters of Credit and Overdrafts against lien of

Fixed Deposits. The Company has utilized the Letter of Credit limit of Rs.480.35 lacs up to 31.03.2010.(Prev. Year Rs. 104.25 lacs)

(b) The Company has pledged fixed deposit of Rs 1.00 Lacs with Sales Tax Department - Pondicherry.

9. Excess Depreciation of Rs. 26.77 lacs provided in earlier years are withdrawn from opening balance of Depreciation fund and shown under the head "Short/Excess Provision of earlier years.

10. Outstanding balances as on 31-03-2010 of Creditors, Debtors, Secured and Unsecured Loans and Loans & Advances given are subject to confirmation / reconciliation. Necessary adjustments if any will be made on completion of reconciliation.

11. The Company has made Investment of Rs. 13.06 Lacs inio c^iiy shares and Rs.18.60 Lacs in Share Application Money in Shree Rama (Mauritius) limited its wholly owned subsidiary Company.

As required in Accounting Standard 13 "Accounting for Investment" issued by ICAI, the company has already provided for diminution in the value of investment of the shares and share application money in earlier years.

12. (a) During the year there is net Exchange Fluctuation Gain of Rs. 395.26 lacs (Previous Year gain of Rs. 3.89 Lacs) on current account & the same is shown separate,y. (b) The Exchange Fluctuation gain on capital Account of Rs. 4.11 lacs is capitalized to cost of Fixed Assets (Previous Year loss of Rs. 38.55 lacs)

13. Prior period income includes Income Tax refund for A. Y. 06-07 & 07-08 aggregating to Rs. 30.78 lacs received during the year in respect of tax deducted by customers but not indentified and separately accounted for in the books in respective years.

14. In view of carried forward business losses and depreciation in the books the company is not liable for Income Tax Liability under section 115JB of Minimum Alternative Tax

15. In view of the loss,

(i) No transfer has been made to the Debenture Redemption Reserves in respect of Secured and Unsecured Debentures,

(ii) No amount is transferred to Capital Redemption Reserve in respect of preference shares.

16. Disclosure pursuant to Accounting Standard - 15 [Revised] Employee Benefits:

A The Company has, with effect from 1" April, 2007, adopted Accounting Standard 15, Employee Benefits [revised 2005] [the revised AS 15]. In accordance with the transitional provisions governing gratuity valuation - defined benefit plan and leave encashment liability - long term liability based on actuarial valuation is as follows :

B Defined benefit plan and long term employment benefit: a General description:

Gratuity (Defined benefit plan):

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary [last drawn salary] for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

b Leave wages (Long term employment benefit) :

The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attaining superannuation age.

17. During the year in pursuance of AS 22 - "Taxes on Income" issued by Institute of Chartered Accountants of India, the Company has provided for Deferred Tax Assets arising on account of depreciation as under :-

18 The Company is primarily engaged in the business of manufacture & sale of "Packaging Products and Diamond". The Company has identified & reported two primary business segments namely "Packaging" & "Diamond" in the context of Accounting Standard 17 on "Segment Reporting" taking into account nature of products and service, the differing risks & returns and the internal business reporting systems. The accounting policies adopted for segment reporting are in line with the accounting policies of the company.

Revenue and Expenses have been identified to a segment on the basis of relationship to operating activities of the Segment.

19 (a) The Accounting Standard 28 - "Impairment of Assets" issued by Institute ofChartered Accountants of India has become applicable to the Company from 1st April, 2004.

(b) In view of cash profit earned during current year as well as past consistently and projection of future profitablility, the Management is of the opinion that its assets are not impaired and no provision for impairment loss is to be made in the books.

20 Derivative instruments and Unhedged Foreign Currency Exposure:

1. Derivative instruments outstanding: NIL

2. Unhedged Foreign Currency Exposure:

21. Figures less than Rs. 500 have been shown at actuals, wherever statutorily required to be disclosed, as the figures have been rounded off to the nearest thousands.

22. Previous year figures have been regrouped / re-stated / reclassified where necessary. Figures in brackets relate to the previous year unless otherwise stated.