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Notes to Accounts of Astral Poly Technik Ltd.

Mar 31, 2017

1. EMPLOYEE BENEFITS:

I. Post-employment Benefit Defined Contribution Plan:

The company makes provident fund (PF) contributions to defined contribution benefit plans for eligible employees. Under the scheme the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions specified under the law are paid to the government authorities (PF commissioner).

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note 28Rs,120.52 Lacs (Previous Year:Rs,102.40 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognized in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

The defined benefit plans typically expose the company to various risk such as;

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

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

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognized in Balance Sheet.

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

The Company expects to make a contribution ofRs,15.51 lacs (as at March 31, 2016 :Rs,7.07 lacs, as at April 1, 2015 :Rs,Nil) to the defined benefit plans during the next financial year.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

II. Other long term employee benefits :

Compensated absences

The liability towards compensated absences (leave encashment) for the year ended March 31, 2017 based on actuarial valuation carried out by using Projected Unit Credit Method resulted in increase in liability byRs,12.01 lacs ( As at March 31, 2016 :Rs,11.06 lacs).

2. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE:

The gross amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year as per the provision of section 135 of the Companies Act, 2013 amounts toRs,200.30 Lacs (Previous year :Rs,182.57 Lacs). The revenue expenditure charged to the Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year isRs,200.60 Lacs (Previous year :Rs,183.00 Lacs) and has been paid.

Note :

a. The amount outstanding are unsecured and will be settled in cash. No expense has been recognized in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.

* Balance outstanding at the end of the year/previous years are stated without considering impact of fair valuation carried out as per Ind AS.

3. SEGMENT REPORTING:

The company has presented segment information in the Consolidated Financial Statement which is presented in the same financial report. Accordingly in terms of paragraph 4 of Ind AS 108 - Operating Segments, no disclosure related to segments are presented in this standalone financial statement.

4. The Company has, on a preferential basis, issued 13,85,204 equity shares of Re. 1 each, fully paid up at a price ofRs,425.93 per share aggregating toRs,5,900.00 lacs to Mr. Vijay Parikh on November 2, 2015, in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

5. Exceptional item for the year ended March 31, 2016 representsRs,83.11 lacs paid by the Company towards the full and final settlement of employees dues in respect of Baddi plant.

6. Disclosure on Specified Bank Notes (SBNs)

The details of Specified Bank Notes (SBNs) held and transacted during the period from November 8, 2016 to December 30, 2016, is given below as required in terms of Ministry of Corporate Affairs notification no G.S.R 308(E) dated March 30, 2017:

* For the purpose of this clause, the term "Specified Bank notes" shall have the same meaning as provided in the notification of the Government of India, in the Ministry of Finance, Department of Economics Affairs number S.O. 3407 (E) dated the 8th November, 2016

7. Financial instruments

1. Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 20 off set by cash and bank balances) and total equity of the Company.

The company''s risk management committee reviews the risk capital structure of the company on semi annual basis. As part of this review the company considers the cost of capital and the risk associated with each class of capital.

i Debt is defined as long-term borrowings, short-term borrowings and current maturities of long term borrowings (excluding financial guarantee contracts and contingent consideration), as described in notes 16 and 20.

The Company''s business activities are exposed to a variety of financial risks, namely market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework who are responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A MANAGEMENT OF MARKET RISK

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- interest rate risk

i Currency risk management

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk :

Derivative instruments:

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

Interest rate swaps to hedge against fluctuations in interest rate changes: As at March 31, 2017 : No. of contracts - 1 (as at March 31, 2016 : No. of contracts - 1 and as at April 1, 2015 : No. of contracts - 1).

The line items in the balance sheet that includes the above hedging instruments are "other financial assets" and "other financial liabilities.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD,EUR and GBP.

The following table details, Company''s sensitivity to a 5% increase and decrease in the rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there would be a comparable impact on the profit and equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and five years. The above sensitivity does not include the impact of foreign currency forward contracts and option contracts which largely mitigate the risk. i i Interest risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligation with floating interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

B MANAGEMENT OF CREDIT RISK

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 10 - Trade receivable).

The company is exposed to credit risk in relation to financial guarantees given to banks in respect of borrowings obtained by the subsidiary company and joint venture. In case of joint Venture, the Company''s share is 37.50% and the guarantee has been given jointly and severally by all the partners of Joint Venture.

The Company''s maximum exposure in this respect is of ''6,562.27 lacs as at March 31, 2017 ,Rs,3,678.68 lacs as at March 31, 2016 andRs,1,989.87 lacs as at April 1, 2015 as disclosed in contingent liabilities (Note 34).

C MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

8. First-time Ind-AS adoption reconciliation

Transition to Ind As - Reconciliation

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

1. Reconciliation of Balance Sheet as at April 1, 2015 (Transition Date) and March 31, 2016

2. Reconciliation of Total Comprehensive Income for the year ended March 31, 2016

3. Reconciliation of Equity as at April 1, 2015 and as at March 31, 2016

4. Reconciliation of Profit for the year ended March 31, 2016

5. Adjustments to Statement of Cash flow

6. Notes on reconciliation

5. Adjustments to Statement of Cash flow

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended March 31, 2016 as compared with the previous GAAP.

6. Notes on Reconciliation

a. The Company has provided certain interest free loans to its subsidiary Company ''Astral Biochem Private Limited'', wholly owned subsidiary. As per Ind AS, interest free component provided by the company to subsidiary company is required to be considered as an additional cost of investment in the books of Company. Hence, value of investment has increased byRs,91.32 lacs as at March 31, 2016 and April 1, 2015.

As per Ind AS, interest free component is required to be fair valued as per Effective Interest Rate (EIR) method. Hence, interest ofRs,43.39 lacs charged by the Company is recognized as income and the amount is considered as an addition to the loan amount provided by holding Company to the subsidiary Company.

b. Under the previous GAAP, investments in equity instrument were classified as long term investments. Long term investments were carried at Cost less provision for other than temporary decline in the value of such investments. On transition to Ind AS, the Company has tested for diminution in value of its investment in Joint Venture in accordance with requirements of Ind AS, which entails discounting of the cash flows from its investment in joint venture. Consequently the resultant decline in value of the investment in joint venture have been recognized in retained earningsRs,676.83 lacs as at March 31, 2016 and April 1, 2015.

Under Ind AS, the components of compound financial instruments held in the joint venture by the Company are classified separately as loan and investment in accordance with the substance of the contractual arrangements. The conversion option classified as investment is determined by deducting the amount of loan component from the fair value of the compound financial instrument. The fair value of the loan component is estimated using the prevailing market interest rate for similar non-convertible instruments. The amount is recognized as a loan on an amortized cost basis using the effective interest rate method until extinguished at the instrument''s maturity date. Accordingly loan component ofRs,354.12 lacs have been deducted from the investment and classified as loan as at March 31, 2016 andRs,225.47 as at April 1, 2015. The net effect of these changes is a increase in total equity as at March 31, 2016 ofRs,49.36 lacs (increase in total equity as at April 1, 2015 ofRs,25.11 lacs) and increase in profit for the year ended March 31, 2016 ofRs,24.25 lacs.

c. Under previous GAAP, the mark to market losses on derivative financial instruments (other than forward contracts which were accounted as per AS-11 on "The Effects of Changes in Foreign Exchange Rates" as at April 1, 2015 and March 31, 2016) were recognized in the Statement of Profit and Loss and the net gains, if any, were not accounted for. Under Ind AS, all derivative financial instruments have been recognized at fair value and the movement is recognized in the Statement of Profit and Loss and Total Equity. The net effect of these changes is a decrease in total equity as at March 31, 2016 ofRs,89.16 lacs (decrease in total equity as at April 1, 2015 ofRs,19.72 lacs) and decrease in profit for the year ended March 31, 2016 ofRs,69.44 lacs.

d. Under previous GAAP, forward contracts were accounted as per AS-11 on "The Effects of Changes in Foreign Exchange Rates" as at April 1, 2015 and March 31, 2016. Under Ind AS, forward contracts have been recognized at fair value and the movement is recognized in the Statement of Profit and Loss and Total Equity. The net effect of these changes is a decrease in total equity as at March 31, 2016 ofRs,5.73 lacs (increase in total equity as at April 1, 2015 ofRs,5.37 lacs) and decrease in profit for the year ended March 31, 2016 ofRs,11.10 lacs.

e. Under previous GAAP, dividends on equity shares recommended by the board of directors after the end of the reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability. Under Ind AS, such dividends are recognized when approved by the shareholders in a general meeting. The effect of this change is an increase in total equity as at April 1, 2015 ofRs,319.57 lacs and reduction in provisions by similar amount.

f. Under previous GAAP, MAT credit entitlement was classified as Other non-current assets/Other current assets. Under Ind AS, MAT credit entitlement is considered as part of deferred tax component. Accordingly, MAT Credit entitlement ofRs,440.50 lacs andRs,478.00 lacs have been deducted from the Other non-current asset and Other current assets respectively andRs,918.50 lacs have been deducted from Deferred Tax Liabilities as at April 1, 2015.

g. Under Previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind As, revenue from sale of products includes excise duty. The corresponding excise duty expense amounting toRs,15,015.12 lacs is presented separately on the face of the Statement of Profit and loss for the year ended March 31, 2016. The change does not affect total equity as at March 31, 2016 and April 1, 2015, profit before tax or total profit for the year ended March 31, 2016.

Under previous GAAP, various schemes, discounts and incentives given to customers were included in ''Sales Promotion and Discount on sales'' expenses. Under Ind AS, the Company will recognize revenue at the fair value of consideration received or receivable. Hence, expenses ofRs,1,497.67 lacs is considered as reductions in selling price and reduced from the net revenue from operations.

h. Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.

i. Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss. The actuarial loss for the year ended March 31, 2016 wereRs,70.05 lacs and the tax effect thereonRs,19.77 lacs. This change does not affect total equity, but there is increase in profit before tax ofRs,70.05 lacs, and in total profit ofRs,50.28 lacs.

9. Recent accounting pronouncement

Standards issued but not yet effective

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of Cash Flows'' and Ind AS 102, ''Share-based payment.'' These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of Cash Flows'' and IFRS 2, ''Share-based payment,'' respectively. The amendments are applicable from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated. Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ''fair values'', but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that includes a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

10. Events after the reporting period

The board of directors at its Meeting held on May 30, 2017 has recommended a dividend of Re. 0.30 per equity share and if approved by the shareholders in the annual general meeting would result in a cash outflow of approximatelyRs,432.44 lacs, including dividend distribution tax.

11. Approval of Financial Statement

The financial statements were approved for issue by the board of directors on May 30, 2017.


Mar 31, 2016

1. EMPLOYEE BENEFITS

The disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 are given below:

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note No. 22 Rs.103.82 Lacs (Previous Year: Rs.95.92 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

2. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year was Rs.182.57 Lacs. Revenue expenditure charged to Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year is Rs.183.00 Lacs and has been paid in cash.

3. CHANGE IN ACCOUNTING POLICY

Effective April 01, 2015, the Company has changed its method for the valuation of its inventories, except for inventories of finished goods, from FIFO (First in First out) basis to weighted average basis due to the change in technology of the financial accounting system, the impact of the change is insignificant on the profit before tax of the Company for the year.

4. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

c) Interest rate swaps to hedge against fluctuations in interest rate changes: No. of contracts:! (Previous Year: No. of contracts : 1) Foreign Currency Exposures not hedged by derivative instruments as at 31st March, 2016 on payable amounting US$ 333.72 Lacs and EURO 18.65 Lacs Equivalent Rs.23,516.35 Lacs (Previous Year: US$ 391.36 Lacs and EURO 2.41 Lacs Equivalent Rs.24,621.86 Lacs) and on receivables amounting US$ 8.12 and GBP 5.71 Lacs Equivalent Rs.1,083.03 Lacs (Previous Year: US$ 2.50 and GBP 5.52 Lacs Equivalent Rs.665.89 Lacs).

Foreign Exchange Loss (Net) of Rs.1,693.21 Lacs (Previous Year: Exchange Loss (Net) of Rs.928.47 Lacs) for the year has been included in respective heads of Statement of Profit and Loss.

5. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such this is the only reportable business segment as per Accounting Standard on Segment Reporting (AS - 17) notified under the Companies (Accounting Standards) Rules, 2006.

6. The Company has, on a preferential basis, issued 13,85,204 equity shares of Rs.1 each, fully paid up at a price of Rs.425.93 per share aggregating to Rs.5,900.00 Lacs to Vijay Parikh on 2nd November, 2015, in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

7. On 10th December 2014, the company allotted 59,84,519 Equity Shares of Rs.1 each for cash at a premium of Rs.401.52 per equity shares aggregating to Rs.24,088.89 Lacs, pursuant to shares issued under Qualified Institutional Placement (QIP). The company has utilized all the proceeds as per offer document, there is no unutilized fund as on 31st March 2015.

8. Exceptional item for the year ended March 31, 2016 represents Rs.83.11 Lacs paid by the Company towards the full and final settlement of employees dues in respect of Baddi plant.

9. Previous year''s figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR (Rs. In Lacs)

As At As At 31st March, 2014 31st March, 2013

Contingent Liabilities

Bank Guarantees 296.08 298.22

Letters of Credit for Purchases 149.75 -

Income tax matters under appeal - 5.77

Guarantee Given by Company on behalf of Joint Venture 1,972.01 - for availing borrowing from local Bank Commitments

Capital Contracts remaining to be executed 1,363.84 1,182.31

2. EMPLOYEE BENEFITS

The disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 are given below:

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note No. 21 Rs. 77.00 Lacs (Previous Year : Rs. 66.63 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (The Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

f) Assumptions :

e) Investment details of plan assets :

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

h) Contributions expected to be paid to the plan during the next financial year Rs. Nil (Previous Year : Rs. Nil).

3. RELATED PARTY DISCLOSURES

1. Name of Party and relationship :

Sr. No. Description of Relationship Name of Related Parties

a. Subsidiaries Astral Biochem Private Limited

Advanced Adhesives Limited

b. Enterprises over which Key Managerial Kairav Chemicals Limited Personnel are able to exercise significant Saumya Polymers LLP (Formerly known influence as Saumya Polymers Private Limited)

Joint Venture Astral Pipes Limited (Formerly known

as Astral Technologies Limited)

c. Key Management Personnel Mr. Sandeep P. Engineer

Mrs. Jagruti S. Engineer Mr. K. R. Shenoy

d. Relatives of Key Management Personnel Sandeep P. Engineer HUF

Mr. Bipin R. Mehta Mrs. Rekha B. Mehta Mrs. Hansa P. Engineer Mr. Kairav S. Engineer

4. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

5. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

6. Previous year''s figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2013

1. CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR

(Rs. In Lacs)

As At As At 31st March, 2013 31st March, 2012

Contingent Liabilities

Bank Guarantees 298.22 155.18

Letters of Credit for Purchases - 38.00

Income tax matters under appeal 5.77 772.53

Commitments

Capital Contracts remaining to be executed 1,182.31 840.82

2. EMPLOYEE BENEFITS

The disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 are given below:

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note No. 20 Rs. 66.63 Lacs (Previous Year Rs. 53.70 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (The Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

3. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

4. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss of subsequent accounting period aggregates to Rs.16.22 Lacs (Previous Year : Rs.51.65 Lacs).

Foreign Currency Exposures not hedged by derivative instruments as at 31st March, 2013 on payable amounting US$ 318.16 Lacs & EURO 9.47 Lacs Equivalent Rs.17,927.61 Lacs (Previous Year: US$ 399.45 Lacs & EURO 9.55 Lacs Equivalent Rs.20,972.25 Lacs) and on receivables amounting US$ 1.61 Lacs Equivalent Rs.87.33 Lacs (Previous Year: US$ 3.61 Lacs Equivalent Rs.183.46 Lacs).

Foreign Exchange Loss (Net) of Rs.1,277.37 Lacs (Previous Year: Exchange Loss (Net) of Rs.2,236.87 Lacs) for the year has been included in respective heads of Statement of Profit and Loss.

5. Previous year''s figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2012

A) The Company has issued only one class of shares referred to as equity shares having a par value of Rs.5/-. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regard to the Company's residual assets.

b) The Company has issued Nil (Previous Year : 19,67,108 Equity Shares) Bonus Shares during the period of 5 years immediately preceding the Balance Sheet date.

c) The amount of per share dividend recognised as distributions to equity shareholders during the year ended 31st March, 2012 is Rs.1.125 (Previous Year: Rs.1.125), subject to approval by shareholders in the ensuing Annual General Meeting.

a) Term Loans Secured by way of first charge, in respect of all the current asset, both present and future, of the Company and Fixed assets, both present and future, and further secured by personal guarantees of Directors.

i. Corporation Bank Term Loan of Rs. 2,477.13 Lacs (Previous Year : Rs. 2,469.30 Lacs) repayable within 72 months including initial moratorium period of twelve months from the date of first disbursement in twenty quarterly equal instalments. Repayable by February 2015.

ii. Standard Chartered Bank Term Loan of Rs.359.38 Lacs (Previous Year : Rs.646.88 Lacs) repayable within 60 months including initial moratorium period of twelve months from the date of first disbursement in sixteen quarterly equal instalments. Repayable by April 2013.

iii.HDFC Bank ECB Loan of Rs.3,561.60 Lacs (Previous Year : Rs. Nil) repayable within 66 months including initial moratorium period of twelve months from the date of first disbursement in eighteen quarterly instalments.

Repayable by December 2016. iv.Standard Chartered Bank ECB Loan of Rs.1,602.72 Lacs (Previous Year : Rs.892.00 Lacs) repayable within 60 months including initial moratorium period of twelve months from the date of first disbursement in nine half yearly instalments. Repayable by March 2013.

b) Vehicle Loans are Secured by way of hypothecation of respective motor vehicles purchased.

i. Kotak Mahindra Prime Limited Vehicle Loan of Rs.35.74 Lacs (Previous Year : Rs.58.98 Lacs) repayable on monthly basis. Repayable by April 2014.

ii. Axis Bank Limited Vehicle Loan of Rs.7.11 Lacs (Previous Year : Rs. Nil) repayable on monthly basis. Repayable by July 2014.

iii.Tata Motors Finance Limited Vehicle Loan of Rs.2.48 Lacs (Previous Year : Rs.4.51 Lacs) repayable on monthly basis. Repayable by April 2013.

* There are no dues to Micro and small Enterprises as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

a) Building Includes Rs.750/- being face value of 15 number of shares of Rs.50/- each held in Kant Apartment Co- Operative Housing Society Limited. Also includes Rs.127.11 Lacs (Previous Year : Rs.127.11 Lacs) for which the procedure for transfer of title in the name of the company is in process.

b) Accumulated Depreciation up to 31st March 2012 includes impairment loss on Plant and Equipment Rs.96.20 Lacs (Previous Year : Rs.96.20 Lacs)

* The Company is lessee under various operation leases under which rental expenses for the year was Rs.91.21 Lacs (Previous year : Rs.61.68 Lacs). The Company has not executed any non cancelable lease agreement.

1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR

(Rs. In Lacs)

As At As At 31st March, 2012 31st March, 2011

Contingent Liabilities

Bank Guarantees 155.18 109.96

Letters of Credit for Purchases 38.00 -

Income tax matters under appeal 772.53 77.79

Commitments

Capital Contracts remaining to be executed 840.82 808.57

2 EMPLOYEE BENEFITS

The disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006 are given below:

Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognized and charged off the year, is as under: Employer's Contribution to Providend Fund Rs. 53.70 Lacs

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

e) Investment details of plan assets :

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

h) Contributions expected to be paid to the plan during the next financial year Rs.Nil (Previous Year : Nil)

The Liability for Leave Encashment and compensated absences as at year end is Rs.53.82 Lacs (Previous Year: Rs.39.21 Lacs)

Figures in the brackets are in respect of the previous year.

3. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

4. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss of subsequent accounting period aggregates to Rs.51.65 Lacs (Previous Year : Rs.29.37 Lacs).

Foreign Currency Exposures not hedged by derivative instruments as at 31 st March, 2012 on payable amounting US$ 399.45 Lacs & EURO 9.55 Lacs Equivalent Rs.20,972.25 Lacs (Previous Year : US$ 243.70 Lacs & EURO 6.49 Lacs Equivalent Rs.11,280.67 Lacs) and on receivables amounting US$ 3.61 Lacs Equivalent Rs.183.46 Lacs (Previous Year : US$ 5.86 Lacs Equivalent Rs.261.34 Lacs).

Foreign Exchange Loss (Net) of Rs.2,236.87 Lacs (Previous Year : Exchange Gain (Net) of Rs.286.99 Lacs) for the year has been included in respective heads of Profit and Loss Account.

36. Provision for current tax has been made in accounts under MAT. Since the company estimates that there will be no taxable profits under normal working of taxable income for the year, Deferred Tax Charges/ Credits have not been recognized in view of the tax holiday enjoyed by a unit of the Company and on considerations of prudence as set out in AS 22 on "Accounting for Taxes on Income".

5. The Company prepares and presents its financial statements as per Schedule VI to the Companies Act, 1956, as applicable to it from time to time. In view of the revision to the Schedule VI as per a notification issued during the year by the Central Government, the financial statements for the financial year ended 31st March, 2012 have been prepared as per the requirements of the Revised Schedule VI to the Companies Act, 1956. The previous year figures have been accordingly regrouped /reclassified to confirm to the current year's classification.


Mar 31, 2011

1. Contingent Liabilities not provided for :

(Rs. In Lacs) Sr. No. Particulars As At As At 31.03.2011 31.03.2010

1 Bank Guarantees 109.96 23.94

2 Letters of Credit for Purchases - 64.34

3 Export Obligations under EPCG Scheme (Duty Involved) - 6.89

4 Capital Contracts remaining to be executed 808.57 607.87

5 Income tax matters under appeal 77.79 - 2. Interest in Joint Venture:

The Company has 31.90% ownership interest in joint venture Company Astral Technologies Limited (ATL), incorporated in Kenya. Its proportionate share in the assets, liabilities, income and expenses etc. in the said joint venture company is given below:

3. Employee Benefits :

The disclosures required under Accounting Standard 15 (Revised) "Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006 are given below :

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognised and charged off the year, is as under : Employer’s Contribution to Providend Fund Rs. 42.25 Lacs

Defined Benefit Plan

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

e. Investment details of plan assets :

To fund the obligations under the Gratuity Plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & Mortality rates are obtained from relevant data of Life Insurance Corporation of India.

h. Contributions expected to be paid to the plan during the next financial year Rs. Nil (Previous Year : Rs. 10.00 Lacs)

The Liability for Leave Encashment and compensated absences as at year end is Rs. 39.21 lacs ( Previous Year : Rs. 32.68 lacs)

4. Accumulated Depreciation upto March 31, 2011 (Schedule ‘4’ ) includes impairment loss on Plant & Machinery – Rs. 96.20 lacs (Previous Year. : Rs. 96.20 lacs).

5. Segment Reporting :

The Company is engaged mainly in production of plastic Products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS – 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

6. Operating Lease :

The Company is Lessee under various operation leases under which rental expenses for the year was Rs. 61.68 Lacs. (Previous Year : Rs. 51.60 Lacs). The Company has not executed any non cancelable lease agreement.

7. Derivative Instruments :

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Companys strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Companys Risk Management Policy. The Company does not use forward contracts for speculative purposes. Outstanding Forward Exchange Contracts entered into by the Company on accounts of payables and receivables:

Expenditure on account of premium on forward exchange contracts to be recognised in the profit and loss of subsequent accounting period aggregates to Rs. 29.37 Lacs (Previous Year : Rs. 22.68 Lacs).

Foreign Currency Exposures not hedged by derivative instruments as at 31st March 2011 on payables, amounting to US$ 243.70 Lacs & EURO 6.49 Lacs Equivalent INR. 11,280.67 Lacs (Previous Year : US$ 140.80 Lacs Equivalent INR. 6,377.82 Lacs) and on receivables, amounting to US$ 5.86 Lacs Equivalent INR. 261.34 Lacs (Previous Year : US$ 3.47 Lacs Equivalent INR. 156.00 Lacs).

Foreign Exchange Gain (Net) of Rs. 286.99 Lacs (Previous Year : Rs. 613.60 Lacs) for the year has been included in respective heads of Profit and Loss Account.

9. There are no dues to Micro and Small Enterprises as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

10. Provision for current tax has been made in accounts under MAT. Since the Company estimates that there will be no taxable profits under normal working of taxable income for the year, Deferred Tax Charges/ Credits have not been recognised in view of the tax holiday enjoyed by a unit of the Company and on considerations of prudence as set out in AS 22 on "Accounting for Taxes on Income”.

11. Previous years figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2010

1. Contingent Liabilities not provided for : (Rs. In Lacs) As At As At Sr. No. Particulars 31.03.2010 31.03.2009 1 Bank Guarantees 23.94 34.01 2 Letters of Credit for Purchases 64.34 389.30 3 Export Obligations under EPCG Scheme (Duty Involved) 6.89 26.27 4 Capital Contracts remaining to be executed 607.87 362.05

2. Employee Benefits :

The disclosures required under Accounting Standard 15 (Revised) “Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006 are given below :

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognised is charged off the year are as under: Employer’s Contribution to Providend Fund Rs. 37.13 Lacs

Defined Benefit Plan

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

e. Investment details of plan assets :

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

h. Contributions expected to be paid to the plan during the next financial year Rs.10.00 Lacs (P.Y. : Rs. 16.00 Lacs)

The Liability for Leave Encashment and compensated absences as at year end is Rs.32.68 Lacs (P.Y. : Rs.25.59 Lacs)

3. Accumulated Depreciation upto March 31, 2010 (Schedule ‘5’ ) includes impairment loss on Plant & Machinery – Rs. 96.20 Lacs (P.Y. : Rs. 96.20 Lacs).

4. Segment Reporting :

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

5. Operating Lease :

The Company is Lessee under various operation leases under which rental expenses for the year was Rs. 51.60 Lacs (P.Y. : Rs. 42.71 Lacs). The Company has not executed any non cancellable lease agreement.

6. Derivative Instruments :

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company’s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company’s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

7. The plant and machineries and equipments located at the Company’s Himachal Pradesh unit Costing Rs. 277.33 Lacs carry first charge in favour of the Government of Himachal Pradesh for a period of five years effective from the year 2005-06 during which the Company was granted a cash subsidy of Rs. 30.00 Lacs for the investments made by the Company in the state.

8. There are no dues to Micro and Small Enterprises as at March 31, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 as been determined to the extent such parties have been identified on the basis of information available with the Company.

9. Provision for current tax has been made in accounts under MAT, Since the Company estimates that there will be no taxable profits under normal working of taxable income for the year, Deferred Tax Charges / Credits have not been recognized in view of the tax holiday enjoyed by a unit of the Company and on considerations of prudence as set out in AS 22 on "Accounting for Taxes on Income".

10. Previous years figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.

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