Enter the first few characters of Company and click 'Go'

Notes to Accounts of Finolex Industries Ltd.

Mar 31, 2023

i) The Company has not made any bonus issue or issue of equity shares pursuant to contracts without payment received in cash or bought back any shares for the period of five years immediately preceding the balance sheet date.

ii) The Company has only one class of equity shares having a par value of ^ 2/- each. Each equity shareholder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

iii) The Board of Directors have proposed on May 22, 2023, a final dividend of ^ 1.50/- (75%) per equity share for financial year 2022-23. The same is subject to approval of the shareholders of the Company at the annual general meeting for the year ended March 31, 2023.

Nature and purpose of reserves

1. Capital redemption reserve

Capital redemption reserve is being created by transfer from Retained earnings at the time of buy back of equity shares in accordance with the Act. The reserve will be utilised in accordance with the provisions of the Act.

2. General reserve

General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income.

3. Securities premium

Amount received (on issue of shares) in excess of the par value has been classified as securities premium. The reserve is utilised in accordance with the provisions of the Companies Act.

4. Retained earnings

Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

5. Equity instruments through other comprehensive income

Equity instruments through other comprehensive income represents unrealised fair value gain(or) loss in investments valued at FVOCI.

Details of terms of borrowings and security for the borrowings

Buyer''s credits are part of working capital facilities. These are repayable based on the terms of each buyer''s credit which is upto 90 days. The interest rate ranging from 0.60% to 5.21%.

Cash credits facilities have interest rate ranging from 6.60% to 9.60%.

The Company has aggregate limits of working capital borrowings of '' 1,916.25 crores

(March 31, 2022: '' 1,606 crores) from various banks.

Borrowings from banks have been utilized for the purpose for which it were taken.

24 Income-taxes

The note below details the major components of income-tax expenses for the year ended March 31, 2023 and March 31, 2022. The note further describes the significant estimates made in relation to Company''s income tax position, and also explains how the income tax expense is impacted by non-assessable and non-deductible items.

D Composition of deferred tax assets and deferred tax liabilities

Deferred taxes are measured using the tax rates that have been enacted or substantively enacted by the end of the reporting period. The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Disclosures pursuant to Ind AS 115 - Revenue from contract with customers, are as follows:

(a) Revenue streams

The Company derives revenue form sale of Pipes and fittings and PVC resin, which is disclosed in note no. 34 as segment revenue. Hence, no disaggregation of revenue is provided separately.

(b) Disaggregation of revenue from contracts with customers

The Company has performed a disaggregated analysis of revenues considering the nature, amount, timing and uncertainty of revenues. This includes disclosure of revenues by product lines, timing of revenue recognition and geography:

Nature of CSR activities:

Agriculture and rural development, eradicating hunger and poverty, promoting education, vocational skills, and livelihood, gender equality and women empowerment, preventive healthcare, heritage art and culture, environmental sustainability, promoting sports, sanitation, hygiene and safe drinking water, animal welfare, support to differently abled, technology incubators, armed forces/veterans, contribution to Swachh Bharat Kosh Clean Ganga Fund.

Consequent to the approval of the Board of Directors at their meeting held on September 15, 2021, the Company transferred leasehold rights of approx. 34.88 acres of land (out of approx. 70 acres) during the quarter post completion of necessary regulatory approvals and formalities. The Company has accordingly, recognised ^ 376.06 crores net gain, disclosed as exceptional item during the previous year.

34 Segment information

The Company is in the business of manufacturing PVC resin and PVC pipes & fittings and based on the management approach as defined in Ind AS 108, the Chief operating Decision Maker (CODM) monitors and review the operating results of the Company in these two segments.. Therefore as per Ind AS 108 "Operating Segments", the Company has disclosed two segments i.e. PVC resin and PVC pipes & fittings.

The management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss that is measured consistently with profit or loss in the financial statements. The Company''s financing (including finance costs and finance income) and income taxes are not allocated to operating segments.

Inter-segment revenues are eliminated upon consolidation and reflected in the ''adjustments and eliminations'' column. All other adjustments and eliminations are part of detailed reconciliations presented further below.

Adjustments and eliminations

Finance income/costs and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed for the entity as a whole.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to these segments as they are managed for the entity as a whole.

Capital expenditure consists of additions of property, plant and equipment and intangible assets and additions to capital work-in-progress.

Inter-segment revenues are eliminated on consolidation.

35 Earnings per share (EPS)

There are no potential shares that have a dilutive effect on the EPS.

36 Disclosure pursuant to employee benefits

A. Defined contribution plans:

Amount of ^ 6.87 crores (March 31, 2022: ^ 6.11 crores) is recognised as expenses and included in note no. 29 "Employee benefits expense".

The contribution are made to recognised provident fund administered by the Government of India for employees @12% of basic salary per regulation. The obligation of the Company is limited to the amount contributed and it has no further contractual constructive obligation.

B. Defined benefit plans:

The Company has Gratuity as post employment benefit which is in the nature of defined benefit plan.

The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service as per Payment of Gratuity Act, 1972. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service.

The sensitivity analysis above has been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis is based on a change in one significant assumption at a time, keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

The same method has been applied for the sensitivity analysis when calculating the recognised defined benefit obligation.

Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1. Liability risks

a. Asset-liability mismatch risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount rate risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

c. Future salary escalation and inflation risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainties in estimating this increasing risk.

d. Withdrawal

Actual withdrawal providing higher or lower than assumed withdrawal and change of withdrawal rate at subsequent valuation can impact plan''s liability.

2. Asset risks

All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

37 Related party transactions

In accordance with the requirement of Ind AS 24 ''Related Party Disclosures'', name of related parties, their relationships, transactions and outstanding balances with them as identified and certified by the management are as follows:

A. Names of the related party and nature of relationship where control exists

There are no parties where control exists.

Terms and conditions of transactions with related parties

Transaction entered into with related parties are made in ordinary course of business and on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

38 Commitments and contingencies

38.1 Commitments

a) Capital commitments :

Estimated amount of contracts remaining to be executed on capital account and not provided for as at March 31, 2023''71.39 crores (March 31, 2022: '' 49.50 crores)

b) Other commitments :

Aggregate amount of bank guarantees other than the performance guarantees outstanding as on March 31, 2023 is '' 34.40 crores (March 31, 2022: '' 31.09 Crores)

38.2 Contingent liabilities
Particulars		March 31, 2023	March 31, 2022
	Claims against the Company not acknowledged as debt in respect of:
a)	Income-tax matters	13.01	3.98
b)	Excise/ Customs/ Service tax matters	61.17	70.55
c)	Sales tax matters	2.11	2.11
d)	Consumer protection matters	0.24	0.07

39 Fair value of financial assets and liabilities

This note explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at (i) fair value (ii) measured at amortised cost and for which fair values are considered to be same as the amortised costs disclosed in the financial statements. They are further classified them into Level 1 to Level 3 as required by the accounting standard and described in the significant accounting policies of the Company. Further, the note describes valuation techniques used, key inputs to valuations and quantitative information about significant unobservable inputs for fair value measurements.

Valuation techniques used to determine the fair value of each financial instrument:

Fair value of financial instruments classified at amortised cost:

The management assessed that the fair values of cash and bank, loans, trade receivables, accrued interest, borrowings, trade payables and other financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Carrying value of non-current financial liabilities are considered to be same as their fair value due to discounting at rate which are an approximation of incremental borrowing rate.

Fair value of financial instruments classified at FVTPL:

Fair value of financial instruments classified at FVTOCI:

These financial instruments consist of investment in equity instruments. The fair value of quoted equity instruments is based on the respective quoted price in the active markets as at the measurement date. The fair value of investments in unquoted equity shares has been estimated using the net asset method. The valuation requires to consider the cost of replacement of an asset as an indication of the fair market value of that asset.

During the year ended March 31, 2023 and March 31, 2022, there were no transfers between Level 1 and Level 2 fair value measurements.

The Company maintains policies and procedures to value financial assets or financial liabilities using the best and most relevant data available. In addition, the Company internally reviews valuations, including independent price validation for certain instruments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s management oversees the management of these risks. The Company''s management is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework. The risk management committee provides assurance to the Company''s management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company''s policies appetite. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

i) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company evaluates credit risk with respect to trade receivables as significantly low, as its payment terms are mostly advance basis.

a) Trade receivables

In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counter party or any group of counter parties having similar characteristics. Trade receivables consist of a large number of customers. The Company has very limited history of customer default, and considers the credit quality of trade receivables that are not past due or impaired to be good.

ii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all time maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system.

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and committed borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities and by monitoring rolling forecasts of its liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

The table summarises the maturity profile of Company''s financial liabilities based on contractual undiscounted payments.

iii) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, trade and other payables, trade receivables, investments, other financial liabilities.

The sensitivity analysis in the following sections relate to the position as at March 31, 2023 and March 31, 2022. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt, proportion of financial instruments in foreign currencies are all constant at March 31, 2023.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, other post retirement obligations and provisions Company''s activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

a) Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities on account of import of raw materials.

PVC pricing is on import parity and import parity value of sales of the Company exceeds the USD payables on a six monthly rolling basis and hence the Company does not generally need to resort to hedging by way of forward contracts, options, etc.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company has short term borrowings with fixed interest rates and hence the future cash-flows of relevant financial instrument are not affected by changes in market interest rate.

c) Price risk

i) Commodity price risk

The Company is affected by the volatility of prices of certain commodity chemicals (Ethylene and PVC) and intermediates (Ethylene and Ethylene Dichloride (''EDC'') and Vinyl Chloride Monomer (''VCM'')). Its operating activities involve the ongoing purchase of VCM, EDC, all being petrochemical products for manufacturing of PVC and pipes and fittings and therefore require a continuous supply of these materials. Prices of PVC manufactured by the Company are monitored by the Company''s management and are adjusted to respond to change in import parity price of PVC in Indian market. Market price of input and output, generally get adjusted over a period of time. Accordingly, the Company is exposed to the variation in prices over short term period.

ii) Equity price risk

The Company''s listed and unlisted equity securities are susceptible to market-price risk arising from uncertainties about future values of the investment securities. The equity securities held by the Company are strategic in nature. The Company''s Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the exposure to unlisted equity securities at fair value was '' 12.38 crores . A decrease of 10% in the fair value will have an impact of approximately '' 1.24 crores on OCI. An increase of 10% in the value of the securities would also impact OCI.

At the reporting date, the exposure to listed equity securities at fair value was '' 1803.52 crores. A decrease of 10% on the NSE market index could have an impact of approximately '' 180.29 crores on OCI and '' 0.06 crores on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI, profit and loss and equity.

41 Capital management

Capital includes equity shares and other equity attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure its ability to continue as going concern, maintain a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company is not subject to externally imposed capital requirement. The Company manages its capital structure and makes adjustments to maintain efficient financing structure in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is total debt divided by total capital plus other equity.

42 Details of dues to Micro and Small Enterprises as defined under MSMED Act, 2006 (as amended)

The management has identified enterprises which qualify under the definition of micro enterprises and small enterprises, as defined under Micro, Small and Medium Enterprises Development (MSMED) Act, 2006. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at the year end has been made in the standalone financial statements based on information received and available with the Company and has been relied upon by the statutory auditor.

44 Disclosure pursuant to Ind AS 116

(a) The Company as a lessee has obtained certain assets such as immovable properties on leasing arrangements for the purposes of its fitting unit. With the exception of short-term leases and leases of low value underlying assets, each lease is reflected on the balance sheet as a right-to-use asset and a lease liability. Variable lease payment which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right-of-use assets. The Company has presented its right-of-use assets separately from other assets. Each lease generally imposes a restriction that unless there is a contractual right for the Company to sub-lease the asset to another party, the right-of-use asset can only be used by the Company. Some lease contain an option to extend the lease for a further term.

(b) Additional information on extension/ termination options: Extension and termination options are included in a number of property lease arrangements of the Company. These are used to maximise operational flexibility in terms of managing the assets used in the Company''s operations. The majority of extension and termination options held are exercisable based on consent of the Company.

(d) Lease payments, not included in measurement of liability

45 Utilization of borrowed funds

(i) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(ii) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46 Undisclosed income :

There are no transactions that have not been recorded in the books of accounts and has been surrendered or

disclosed as income during the year in the tax assessments under the Income-tax Act, 1961

47 Details of Crypto Currency or Virtual currency :

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

48 Transactions with struck-off companies :

The Company does not have any transaction or outstanding balance with struck-off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, during current and previous year.

49 Registration/satisfaction of charges with Registrar :

There are no charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period in the current as well as in the previous year.

50 Previous year comparatives

Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification / disclosure.

The accompanying notes to the standalone financial statements including a summary of significant accounting policies and explanatory information form an integral part of these standalone financial statements.

Mar 31, 2022

There are no trade receivables having significant increase in credit risk or which are credit impaired or doubtful as

at March 31, 2022 ('' Nil as at March 31, 2021)

There are no dues from private companies in which director of the Company, is a director or a member.

Refer note 37 for terms and conditions relating to related party receivables.

Refer note 39 for classification of financial instruments by category and into fair value level of hierarchy Refer note 40 for credit risk of trade receivables.

Companyâs trade receivables consist of receivables from dealers and customers against sales of pipes and fittings and PVC resin. Trade receivables are mostly on terms of advance payment and in certain cases credit period is generally upto 60 days. Company also charges interest @ 18% p.a. in case of delay in collection of trade receivables.

As on March 31, 2022, the trade receivables are free from hypothecation. As on March 31, 2021 , trade receivables were hypothecated against current borrowings. (Refer Note 20).

Refer note 39 for classification of financial instruments by category and into fair value level of hierarchy

The Company has not granted any loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013) either severally or jointly with any other person, that are:

(a) repayable on demand; or

(b) without specifying any terms or period of repayment

15 Equity Share Capital (Contd.)

i) The Company has not made any bonus issue of equity shares during last 5 years.

ii) The Company has only one class of equity shares having a par value of '' 2/- each. Each equity shareholder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

iii) The Board of Directors have proposed on May 18, 2022, a Final Dividend of ^ 2/- (100%) per equity share and a Special Dividend of ^ 2/- (100%) per equity share for financial year 2021-22. The same is subject to approval of the shareholders of the Company at the annual general meeting for the year ended March 31, 2022.

iv) The Board of Directors at their Meeting held on February 1, 2021 approved the sub-division of each equity share of face value of ^ 10/- fully paid up into 5 equity shares of face value of ^ 2/- each fully paid up. The same was approved by the Members on March 26, 2021 through postal ballot and e-voting. The effective date for the subdivision was April 16, 2021. Consequently the split of equity shares is been effected from April 16, 2021. Accordingly, equity shares and earning per shares have been adjusted for share split in accordance with IND AS 33 âEarning Per Shareâ read with Ind AS 10 Events after Reporting Period.

v) Capital Management:

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 20 and 11.1 offset by cash and cash equivalents) and total equity of the Company. The Company is not subject to any externally imposed capital requirements. The Companyâs risk management committee reviews the capital structure of the Company on an ongoing basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital.

Note

Nature and purpose of reserves

1. Capital Redemption Reserve

During financial year ended March 31, 2002 and March 31, 2003, the Company bought back shares of the Company out of free reserves and in order to comply with the requirements of Company law , the Company created share capital buy back reserve to the extent of the face value of shares bought back.

2. General reserve

a) The Company was entitled to receive Industrial Promotion Subsidy under the Package Scheme of Incentives, for the period from April 1, 2011 to March 31, 2018. Further, during FY 2020-21, the Company has received extension for 5 years which will expire by March 2023. The aforesaid subsidy is in relation to investments in property, plant and equipment at Ratnagiri plant. Accordingly, the same has been classified as grant related to assets and the Company is recognising revenue from grant over the life of the property, plant and equipment.

Details of terms of borrowings and security for the borrowings

The Company has aggregate limits of working capital borrowings of ^ 1,606 Crores 2,205.75 Crores as at March 31, 2021) from various banks.

As at March 31, 2021, the Company had working capital borrowing limits aggregating ^ 2,205.75 Crores ( including limits of ^ 1,395.75 Crores, from Bank of India Consortium which were secured against hypothecation of inventories and book debts and second equitable mortgage of immovable properties falling within the battery limit of the site of the Companyâs plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth).

Borrowings from banks have been utilized for the purpose for which it were taken.

Quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts which are filed during the year.

24 Income Taxes

The note below details the major components of income tax expenses for the year ended March 31, 2022 and March 31, 2021. The note further describes the significant estimates made in relation to Companyâs income tax position, and also explains how the income tax expense is impacted by non-assessable and non-deductible items.

D Composition of deferred tax assets and deferred tax liabilities

The carried forward long term capital losses of '' 24.39 crore has been set off against long term capital gain on transfer of leasehold rights during the year , which is disclosed as exceptional item. Refer Note 33.

During the year 2019-20, new section 115BAA is introduced by the CBDT. As per this section, option is given to all existing companies to either pay income tax as per the existing rates (i.e. 25% or 30% plus applicable surcharge and cess) or as per concessional rate of 22% plus applicable surcharge and cess. This new rate is available only if company forgoes certain exemptions and deductions.

Since this new rate is beneficial, company has adopted the new tax rate of 25.168% (i.e. 22% including surcharge and cess) for computing Income tax & deferred tax for year ended March 31, 2022 and March 31, 2021.

34 Segment information

The Company is in the business of manufacturing PVC resin and PVC pipes & fittings. Therefore as per Ind AS 108 âOperating Segmentsâ, the Company has disclosed two segments i.e. PVC resin and PVC pipes & fittings.

The management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss that is measured consistently with profit or loss in the financial statements. The Companyâs financing (including finance costs and finance income) and income taxes are not allocated to operating segments.

I nter-segment revenues are eliminated upon consolidation and reflected in the âadjustments and eliminationsâ column. All other adjustments and eliminations are part of detailed reconciliations presented further below.

Adjustments and eliminations

Finance income , costs and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed for the entity as a whole.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to these segments as they are managed for the entity as a whole.

Capital expenditure consists of additions of property, plant and equipment and intangible assets and additions to capital work-in-progress.

Inter-segment revenues are eliminated on consolidation.

Earnings Per Share (EPS)

Basic EPS is calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year. In compliance with Indian Accounting Standard 33 -âEarnings per shareâ, the disclosure of earnings per share for the year ended March 31, 2022 and March 31, 2021 has been arrived at after giving effect of share split. (Refer Note 15 (iv))

There are no potential shares that have a dilutive effect on the EPS.

Disclosure pursuant to Employee benefits Defined contribution plans:

Amount of ^ 6.11 Crores (March 31, 2020: ^ 5.22 Crores) is recognised as expenses and included in Note No. 29 âEmployee benefit expenseâ

Defined benefit plans:

The Company has Gratuity as post employment benefit which is in the nature of defined benefit plan.

The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service.

The gratuity plan is governed by the payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the memberâs length of service and salary at retirement age.

The same method has been applied for the sensitivity analysis when calculating the recognised defined benefit obligation.

Risk Exposure And Asset Liability Matching

Provision of a defined benefit scheme certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1. Liability risks

a. Asset-Liability Mismatch Risk-

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practice can have a significant impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at managementâs discretion may lead to uncertainties in estimating this increasing risk.

2. Asset Risks

All plan assets are maintained in a trust fund managed by a public sector insurer LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.

The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The Company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

C. Other long-term employment benefits

The Company has compensated absences plan which is covered by other long-term employee benefits.

*As post employment obligations and other long-term employee benefits obligation are computed for all employees in aggregate, the amounts relating to key management personnel cannot be individually computed and hence are not included in the above

Terms and conditions of transactions with related parties

Transaction entered into with related parties are made in ordinary course of business and on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

Commitments with related parties

The Company has not given any commitment to the related party as at March 31, 2022 (March 31, 2021: ^ Nil)

38 Commitments and contingencies 38.1 Commitments

a) Capital commitments :

Estimated amount of contracts remaining to be executed on capital account and not provided for as at March 31, 2022 ^ 49.50 Crores (March 31, 2021: ^ 23.82 Crores)

b) Other commitments :

Aggregate amount of bank guarantees other than the performance guarantees outstanding as on 31^st March 2022 is ^ 31.09 Crores (^ 32.42 Crores as on 31^st March 2021)

38.2 Contingent liabilities
Particulars		March 31, 2022	March 31, 2021
	Claims against the Company not acknowledged as debt
a)	Liabilities in respect of income tax matters for which the Company has succeeded in appeal but Income Tax Department has gone in further appeal	0.10	0.10
b)	Liabilities in respect of income tax matters for which the Company has gone in further appeal	3.88	4.70
c)	Excise/Customs/Service Tax in respect of which either show cause notice is received or the Company/Department is in appeal	70.55	91.43
d)	Sales Tax matters in respect of which either show cause notice is received or the Company/Department is in appeal.	2.11	4.59
e)	Consumer Protection matters in respect of which customers have gone for recovery on account of quality claims.	0.07	0.27

39 Fair value of financial assets and liabilities

This note explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised & measured at (i) fair value (ii) measured at amortised cost and for which fair values are considered to be same as the amortised costs disclosed in the financial statements. They are further classified them into Level 1 to Level 3 as required by the accounting standard and described in the significant accounting policies of the Company. Further, the note describes valuation techniques used, key inputs to valuations and quantitative information about significant unobservable inputs for fair value measurements.

Fair value of financial instruments classified at amortised cost:

Carrying value of non-current financial liabilities are considered to be same as their fair value due to discounting at rate which are an approximation of incremental borrowing rate.

Fair value of financial instruments classified at FVTPL:

The Company has not performed a fair valuation of its investment in unquoted ordinary shares of Saraswat Co-op Bank Ltd , which are classified as FVTPL (refer Note 4), as the Company believes that impact of change, if any , on account of fair value is insignificant.

Fair value of financial instruments classified at FVTOCI:

During the year ended March 31, 2022 and March 31, 2021, there were no transfers between Level 1 and Level 2 fair value measurements.

During the year ended March 31, 2022 investments in quity instruments of '' 12.36 Crores were transferred from Level 3 to Level 2 , based on fair valuation report issued by an independent valuer.

The Companyâs principal financial liabilities comprise short term borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Companyâs operations. The Companyâs principal financial assets include investments, trade receivables and cash and cash equivalents that arrive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Companyâs management oversees the management of these risks. The Companyâs management is supported by a risk management committee that advises on financial risks and the appropriate financial risk governance framework. The risk management committee provides assurance to the Companyâs management that the Companyâs financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Companyâs policies appetite. It is the Companyâs policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

i) Credit risk

40 Financial risk management objective and policies (Contd.) a) Trade Receivables

The Company evaluates credit risk with respect to trade receivables as significantly low, as its payment terms are mostly advance basis.

ii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. Companyâs objective is to, at all time maintain optimum levels of liquidity to meet its cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from domestic and international banks at optimised cost. Company enjoys strong access to domestic and international capital market across debt, equity and hybrids.

The table summarises the maturity profile of Companyâs financial liabilities based on contractual undiscounted payments.

iii) Market risk

The sensitivity analysis in the following sections relate to the position as at March 31, 2022 and March 31, 2021. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt, proportion of financial instruments in foreign currencies are all constant at March 31, 2022.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, other post retirement obligations and provisions Companyâs activities expose it to variety of financial risks, including effect of changes in foreign currency exchange rate and interest rate.

a) Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities on account of import of raw materials.

PVC pricing is on import parity and import parity value of sales of the Company exceeds the USD payables on a six monthly rolling basis due to which a natural hedge exists and hence the Company does not generally need to resort to hedging by way of forward contracts, options, etc.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company has short term borrowings with fixed interest rates and hence the future cash-flows of relevant financial instrument are not affected by changes in market interest rate.

c) Price risk

i) Commodity Price risk

The Company is affected by the volatility of prices of certain commodity chemicals ( Ethylene and PVC) and intermediates (EDC and VCM). Its operating activities involve the ongoing purchase of Vinyl Chloride Monomer (âVCMâ), Ethylene and Ethylene Dichloride (âEDCâ), all being petrochemical products for manufacturing of PVC and pipes and fittings and therefore require a continuous supply of these materials. Prices of PVC manufactured by the Company are monitored by Company management and are adjusted to respond to change in import parity price of PVC in Indian market. Market price of input and output, generally get adjusted over a period of time. Accordingly, the Company is exposed to the variation in prices over short term period.

ii) Equity price risk

The Companyâs listed and unlisted equity securities are susceptible to market-price risk arising from uncertainties about future values of the investment securities. The equity securities held by the Company are strategic in nature. The Companyâs Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the exposure to unlisted equity securities at fair value was ^ 12.36 Crores . A decrease of 10% in the fair value will have an impact of approximately ^ 1.24 Crores on OCI. An increase of 10% in the value of the securities would also impact OCI.

At the reporting date, the exposure to listed equity securities at fair value was ^ 836.61 Crores. A decrease of 10% on the NSE market index could have an impact of approximately ^ 83.66 Crores on OCI and ^ 0.055 Crores on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI, profit and loss and equity.

41 Capital management

Capital includes equity shares and other equity attributable to the equity holders of the Company. The primary objective of the Companyâs capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. Company monitors capital using a gearing ratio, which is total debt divided by total capital plus other equity.

44 Utilization of borrowed funds

45 Compliance with approved scheme of Arrangements :

The Company does not have any Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

46 Undisclosed income :

There are no transactions that has been not recorded in the books of accounts and has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961

47 Details of Crypto Currency or Virtual currency :

There are no transaction/holding of crypto or virtual currency.

48 Transactions with struck-off companies :

There is are no transactions with struck-off companies under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956, during current and previous year.

49 Registration/satisfaction of charges with Registrar :

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period in the current as well as in the previous year.

50 Previous year comparatives

Previous yearâs figures have been regrouped/ reclassified wherever necessary to correspond with the current yearâs classification / disclosure.

Mar 31, 2021

Property ,plant and equipment pledged as security :

Extension of second equitable mortgage, created in favour of Consortium of lenders on pari passu basis in respect of immovable properties falling within the battery limit of the site of the Company''s plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth. Also Refer Note 20 for the same.

Capital work-in-progress:

Capital work-in-progress (''CWIP'') comprises cost of property, plant and equipment that are not yet installed and ready for their intended use at the balance sheet date.

Capital commitments:

Refer Note 37.1 for disclosure of contractual commitments for the acquisition of Property, plant and equipment.

notes to the standalone financial statements

for the year ended March 31,2021

(All amounts in H Crores, unless otherwise stated)

Note 4 : Investments : Non Current (Contd..)

Face Value J*	Number of Shares as at *		Balances as at
Face Value J*	March 31, 2021	March 31, 2020	March 31, 2021	March 31, 2020


10	53,73,938	53,73,938	12.38	8.55

10	1,000	1,000

10	46,35,000	46,35,000	7.50	7.50
10	49,994	49,994	0.05	0.05


10,00,000	250	-	26.68	-
10,00,000	250	-	26.37	-
10,00,000	100	-	10.94	-
10,00,000	300	-	32.62	-
10,00,000	250	-	25.91	-
10,00,000	200	-	21.22	-

1,000	1,00,000		10.78
1,000	1,00,000		11.76
1,000	60,000		6.90
1,000	60,000		6.59

Particulars

Unquoted

Investments designated at fair value through other comprehensive income (FVTOCI)

Finolex Infrastructure Limited Investments designated at fair value through profit and loss (FVTPL)

The Saraswat Co-op Bank Limited#

Investments measured at cost - Associate Companies

a) Finolex Plasson Industries Private Limited

b) Pawas Port Limited Investments measured at amortised cost - Bonds (Quoted)

Perpetual Bonds 9.56% State Bank of India 8.50% State Bank of India 8.75% State Bank of India 8.85% HDFC Bank Limited 8.99% Bank of Baroda 8.25% Bank of Baroda Tax Free Bonds 7.18% Indian Railway Finance Corporation 19 Feb 2023 8.23% Indian Railway Finance Corporation 18 Feb 2024 7.07% Indian Railway Finance Corporation 21 Dec 2025 7.93% Rural Electrification Corporation Limited 27 Mar 2022

206

Finolex Industries Limited

Fair value disclosures along with Fair value hierarchy disclosures for financial assets and liabilities are stated in Note 38.

Risk Management Strategy

Refer Note 39 on financial risk management objectives and policies for financial instruments.

In accordance with IND AS 27- Separate financial statement, company has valued its investment in associate at cost.

There are no Loans and security deposits having significant increase in credit risk or which are credit impaired or doubtful as at March 31, 2021 (H Nil as at March 31,2020)

Refer note 38 for classification of financial instruments by category and into fair value level of hierarchy

a) Raw materials include goods in transit of H 6.02 Crores (H 24.42 Crores as at March 31,2020)

b) Write down of inventories to net realisable value amounted to H 4.95 Crores (March 31, 2020: H 3.33 Crores). These were recognised as an expense during the year.

c) The above inventories are hypothecated with bankers for working capital facilities. (Refer Note 20)

d) Refer Note 2.7 for basis of valuation of inventories.

Fair value disclosures for financial assets & liabilities and fair value hierarchy disclosures for investment are stated in Note 38

Risk Management Strategy

Refer Note 39 on financial risk management objectives and policies for financial instruments.

There are no trade receivables having significant increase in credit risk or which are credit impaired or doubtful as at March 31,2021 (H Nil as at March 31,2020)

There are no dues from private companies in which director of the company, is a director or a member.

Refer note 36 for terms and conditions relating to related party receivables.

Refer note 38 for classification of financial instruments by catergory and into fair value level of hierarchy

Refer note 39 for credit risk of trade receivables.

Company''s trade receivables consist of receivables from dealers and customers against sales of pipes and fittings and PVC resin. Trade receivables are mostly on terms of advance payment and in certain cases credit period is upto 60 days. Company also charges interest @ 18% p.a. in case of delay in collection of trade receivables.

The above trade receivables are hypothecated with bankers for working capital facilities. (Refer Note 20)

There are no loans and deposits having significant increase in credit risk or which are credit impaired or doubtful as at March 31,2021 (H Nil as at March 31,2020)

Refer note 38 for classification of financial instruments by catergory and into fair value level of hierarchy

i) The Company has not made any bonus issue of equity shares during last 5 years.

ii) The Company has only one class of equity shares having a par value of H2/- each post effect of share split (March 31,2020 H10/-each) . Each equity shareholder is entitled to one vote per share and has a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

iii) The Board of Directors have proposed on June, 25 2021, a Final Dividend of H 2/- (100%) per equity share (subject to tax) and a Special Dividend of H 2/- (100%) per equity share (subject to tax) for financial year 202021. The same is subject to approval of the shareholders of the Company at the annual general meeting for the year ended March 31, 2021. During the financial year ended March 31, 2020 the Board of Directors had declared Interim Dividend of H 10 (100%) per share (Face Value of H 10 each) on February, 27 2020 which is considered as final dividend.

iv) The Board of Directors at their Meeting held on February 1,2021 approved the sub-division of each equity share of face value of H 10/- fully paid up into 5 equity shares of face value of H 2/- each fully paid up. The same has been approved by the Members on March 26, 2021 through postal ballot and e-voting. The effective date for the subdivision was April 16, 2021. Consequently the split of equity shares is been effected from April 16, 2021. Accordingly, equity shares and earning per shares have been adjusted for share split in accordance with IND AS 33 ''Earning Per Share'' read with Ind AS 10 Events after Reporting Period.

v) Capital Management:

The Company manages its capital to ensure that it will be able to continue as a going concern while maximizing the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 20 and 11.1 offset by cash and cash equivalents) and total equity of the Company. The Company is not subject to any externally imposed capital requirements. The Company''s risk management committee reviews the capital structure of the Company on an ongoing basis. As part of this review, the committee considers the cost of capital and the risks associated with each class of capital.

1. Capital Redemption Reserve

During financial year ended March 31,2002 and March 31,2003, the company bought back shares of the company out of free reserves and in order to comply with the requirements of company law the company created share capital buy back reserve to the extent of the face value of shares bought back.

2. General reserve

The company was entitled to receive Industrial Promotion Subsidy under the Package Scheme of Incentives, for the period from 1st April, 2011 to 31st March 2018. Further, during the year the company has received extension for 5 years which will expire by March 2023. The aforesaid subsidy is in relation to investments in property, plant and equipment at Ratnagiri plant. Accordingly, the same has been classified as grant related to assets and the company is recognising revenue from grant over the life of the property, plant and equipment.

) The company has received the eligibility certificate for the industrial promotion subsidy under the package incentive scheme as mentioned above. The government grant accured during the current year aggregating H 26.22 Crores (March 31,2020 - Nil)

Details of terms of borrowings and security for the borrowings

The aggregate limits of working capital borrowings (fund and non fund based) of H 1,395.75 Crores (March 31,2020 : H 1,395.75 Crores) from a consortium of lenders lead by Bank of India together with all interest, liquidated damages, costs, charges and other moneys payable under working capital consortium agreement/sanction letters are secured by:

1) Hypothecation of inventories and book debts; and

2) Extension of second equitable mortgage, created in favour of a consortium of lenders on pari passu basis with other second charge holder by deposit of title deeds with Axis Bank Limited (ABL), New Delhi. ABL acting as an agent for the Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Company''s plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

Refer Note 39 for discussion on Company''s financial risk management policies and procedures

The note below details the major components of income tax expenses for the year ended 31 March 2021 and 31 March 2020. The note further describes the significant estimates made in relation to company''s income tax position, and also explains how the income tax expense is impacted by non-assessable and nondeductible items.

Composition of deferred tax assets and deferred tax liabilities

During the previous year ended 31 March 2020, the Company had paid dividend to its shareholders. This had resulted in payment of dividend distribution tax (DDT) to the taxation authorities. The Company believes that dividend distribution tax represented additional payment to taxation authority on behalf of the shareholders. Hence dividend distribution tax paid was charged to equity.

During the year 2019-20, new section 115BAA is introduced by the CBDT. As per this section, option is given to all existing companies to either pay Income

Composition of deferred tax (expense)/ income recognised in the statement of profit and loss (Contd..)

tax as per the existing rates (i.e. 25% or 30% plus applicable surcharge and cess) or as per concessional rate of 22% plus applicable surcharge and cess. This new rate is available only if company forgoes certain exemptions and deductions. Since this new rate is beneficial, company has adopted the new tax rate of 25.168% (i.e. 22% including surcharge and cess) for computing Income tax & deferred tax for year ended 31 March, 2021.

The Company is in the business of manufacturing of PVC resin and PVC pipes & fittings. Therefore as per Ind AS 108 "Operating Segments", the Company has disclosed two segments i.e. PVC resin and PVC pipes & fittings.

Adjustments and eliminations

Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed for the entity as a whole.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed for the entity as a whole.

Capital expenditure consists of additions of property, plant and equipment and intangible assets and additions to capital work in progress.

Basic EPS is calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year. In compliance with Indian Accounting Standard 33 - ''Earnings per share'', the disclosure of earnings per share for the year ended March 31,2021 and March 31, 2020 has been arrived at after giving effect of share split. (Refer Note 15 (iv))

There are no potential shares that have a dilutive effect on the EPS.

Defined contribution plans:

Amount of? 5.17 Crores (March 31, 2020: ? 4.84 Crores) is recognised as expenses and included in Note No. 29 Employee benefit expense

Defined benefit plans:

The Company has Gratuity as post employment benefit which is in the nature of defined benefit plan.

The sensitivity analyses above have been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis is based on a change in one significant assumption at a time, keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

Risk Exposure And Asset Liability Matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed hereunder, as companies take on uncertain long term obligations to make future benefit payments.

1. Liability Risks

a. Asset-Liability Mismatch Risk-

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

b. Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

c. Future Salary Escalation and Inflation Risk

2. Asset Risks

All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years. The Company has opted for a traditional fund wherein all assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

C. Other long-term employment benefits

The Company has compensated absences plan which is covered by other longterm employee benefits.

Related parties have been identified on the basis of requirement of Ind AS 24 ''Related Party Disclosures'' and representation made by the Key Management Personnel and taken on record by the Board.

Terms and conditions of transactions with related parties

Commitments with related parties

The company has not given any commitment to the related party as at March 31,2021 (March 31,2020: HNil)

Note 37 : Commitments and contingencies

37.1 Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for as at March 31, 2021 H 23.82 Crores(March 31, 2020: H 28.38 Crores)

Note 38 : Fair value of financial assets and liabilities

This note explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised & measured at i. fair value ii. measured at amortised cost and for which fair values are considered to be same as the amortised costs disclosed in the financial statements. They are further classified them into Level 1 to Level 3 as required by the accounting standard and described in the significant accounting policies of the Company. Further, the note describes valuation techniques used, key inputs to valuations and quantitative information about significant unobservable inputs for fair value measurements.

Valuation techniques used to determine the fair value of each financial instrument:

Fair value of financial instruments classified at amortised cost:

The management assessed that the fair values of cash and bank, loans, trade receivables, accrued interest, trade payables, borrowings, trade payables and other financial liabilities approximate their carrying amounts largely due to the shortterm maturities of these instruments.

Carrying value of non-current financial liabilities are considered to be same as their fair value due to discounting at rate which are an approximation of incremental borrowing rate.

Fair value of financial instruments classified at FVTPL:

These financial instruments consist of investment in quoted equity instruments and units of mutual funds. The fair value of quoted equity instruments is based on the respective quoted price in the active markets as at the measurement date and fair value of investment in mutual funds is determined using the quoted price ( NAV ) of the respective units in the active market at the measurement date. The Company has not performed a fair valuation of its investment in unquoted ordinary shares of Saraswat Co-op Bank Ltd , which are classified as FVTPL (refer Note 4), as the Company believes that impact of change, if any , on account of fair value is insignificant.

These financial instruments consist of investment in equity instruments. The fair value of quoted equity instruments is based on the respective quoted price in the active markets as at the measurement date.The fair value of investments in unquoted equity shares has been estimated using the net asset method. The valuation requires to consider the cost of replacement of an asset as an indication of the fair market value of that asset.

During the year ended 31 March 2021 and 31 March 2020, there were no transfers between Level 1 and Level 2 fair value measurements.

The Company''s principal financial liabilities comprise short term borrowings, trade payables and other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include investments, trade receivables and cash and cash equivalents that arrive directly from its operations.

i) Credit risk

a) Trade Receivables

The Company evaluates credit risk with respect to trade receivables as significantly low, as its payment terms are mostly advance basis.

b) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with Company''s policy. Investments of surplus funds are made only with approved counter parties and within credit limits assigned to each counterparty. Company monitors ratings, credit spread and financial strength of its counter parties. Based on ongoing assessment company adjust it''s exposure to various counterparties. Company''s maximum exposure to credit risk for the other components of balance sheet is the carrying amount as disclosed below:

Particulars	Asset group	Internal	Carrying amount net of
		rating	impairment provision
			As at	As at
			March 31	March 31
			2021	2020
Financial assets for	Investments	A	1,592.19	580.06
which credit risk has not	Loans	A	4.02	3.58
increased significantly from inception	Other financial	A	41.13	15.53
increased significantly from inception	assets	A	41.13	15.53

ii) Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. Company''s objective is to, at all time maintain optimum levels of liquidity to meet its cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft, debt from domestic and international banks at optimised cost. Company enjoys strong access to domestic and international capital market across debt, equity and hybrids.

The sensitivity analysis in the following sections relate to the position as at 31 March 2021 and 31 March 2020. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt, proportion of financial instruments in foreign currencies are all constant at 31 March 2021.

a) Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities on account of import of raw materials.

b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company has short term borrowings with fixed interest rates and hence the future cash-flows of relevant financial instrument are not affected by changes in market interest rate.

c) Price risk

i) Commodity Price risk

The Company is affected by the volatility of prices of certain commodity chemicals ( Ethylene and PVC) and intermediates (EDC and VCM). Its operating activities involve the ongoing purchase of Vinyl Chloride Monomer (''VCM''), Ethylene and Ethylene Dichloride (''EDC''), all being petrochemical products for manufacturing of PVC and pipes and fittings and therefore require a continuous supply of these materials. Prices of PVC manufactured by the Company are monitored by company management and are adjusted to respond to change in import parity price of PVC in Indian market. Market price of input and output, generally get adjusted over a period of time. Accordingly, the company is exposed to the variation in prices over short term period.

At the reporting date, the exposure to unlisted equity securities at fair value was H 12.38 Crores . A decrease of 10% in the fair value will have an impact of approximately H 1.24 Crores on OCI. An increase of 10% in the value of the securities would also impact OCI.

At the reporting date, the exposure to listed equity securities at fair value was H 850.85 Crores. A decrease of 10% on the NSE market index could have an impact of approximately H 85.08 Crores on OCI and H 0.055 Crores on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI, profit and loss and equity.

Note 42 : Impact of lockdown due to Novel Corona Virus

The Company''s factories which had to suspend operations temporarily from the March 23, 2020, due to Government''s directives relating to the Novel Corona Virus causing Covid 19, resumed operations in a phased manner at different plants from April 29, 2020 onwards in accordance with the guidelines and norms prescribed by the Government authorities.

The Company has evaluated the impact of Covid 19 on the operations of the Company, inventories, investments, property, plant & equipment, current borrowings and trade payables. The management has considered the possible effects, if any, on the carrying amounts of these assets and liabilities up to the date of approval of these financial statements. Based on the information from the internal and external sources; the management estimates to recover the carrying amount of these assets and currently does not anticipate any material impairment.

Capital includes equity shares and other equity attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.Company monitors capital using a gearing ratio, which is total debt divided by total capital plus other equity.

Mar 31, 2018

1. Corporate Information

Finolex Industries Limited (âFIL or âthe Companyâ) is a company incorporated and domiciled in India and its equity shares are listed on Bombay Stock Exchange and National Stock Exchange. Its registered office is situated at Gat No.399, Village Urse, Taluka Maval, District Pune, India.

The company is engaged in the business of manufacturing PVC pipes & fittings, manufacturing of PVC resin and power generation.

The financial statements were authorised for issue in accordance with a resolution of the Board of Directors on May 23, 2018.

2. Summary of significant accounting policies

Basis of Preparation

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (âInd ASâ) notified under Section 133 of the Companies Act 2013 (Actâ), read together with the Companies (Indian Accounting Standards) Rules, 2015, as amended (âRulesâ).

The financial statements have been prepared on accrual basis and under historical cost convention, except for financial assets and financial liabilities that have been measured at fair value.

The financial statements are presented in INR and all values are rounded to the nearest Lakhs (INR 00,000), except when otherwise indicated.

Fair Value disclosures

Fair value disclosures for financial assets and liabilities are stated in Note 39 and fair value hierarchy disclosures for investment are stated in Note 40.

Risk Management Strategy

Refer Note 41 on risk management objectives and policies for financial instruments.

a) Raw materials include goods in transit of RS.3,212.98 Lakhs (RS.4,486.91 Lakhs as at March 31, 2017)

b) The above inventories are hypothecated against current borrowings. Also Refer Note 21.

c) Refer Note 2.12 for basis of valuation of inventories.

d) Write-down of inventories to net realisable value (net of reversal) amounted to RS.529.86 Lakhs (March 31, 2017: RS.1,207.81 Lakhs). These were recognised as an expenses during the year and included in material consumption.

Fair Value disclosures

Fair value disclosures for financial assets and liabilities are stated in Note 39 and fair value hierarchy disclosures for investment are stated in Note 40.

Risk Management Strategy

Refer Note 41 on risk management objectives and policies for financial instruments.

Companyâs trade receivables consist of receivables from dealers and customers against sales of pipes and fittings and PVC resin. Trade receivables are mostly on terms of advance payment and credit period is given selectively in few cases only. Company also charges interest @ 18% p.a in case of default in collection of trade receivables.

For the year ended March 31, 2018, the Company had decided to sell its investment in the said company. As on March 31, 2018, the Company had taken the necessary actions to complete the sale and expected the sale to take place within one year.

Terms/ Rights attached to equity shares:

The Company has only class of equity shares having a par value of RS.10 per share. Each holder of the equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares are entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

3.1 Nature and purpose of reserves

1) Share capital buyback reserve

During financial year ended March 31, 2002 and March 31, 2003, the company bought back shares of the company out of free reserves and in order to comply with the requirements of company law the company created share capital buy back reserve to the extent of the face value of shares bought back.

2) General reserve

Till April 1, 2013, the company was governed by provisions of the Companies Act of 1956. As per the requirements of this act read along with Companies (Transfer of Profit to Reserve) Rules, 1975, any company declaring dividend in excess of 10% of face value of equity share was mandatorily required to transfer specified (%) of amount to general reserve. Accordingly, the company has transferred amount to this reserve over the years to comply with the company law requirements.

a) The company is entitled to receive Industrial Promotion Subsidy under the Package Scheme of Incentives, during the period from April 1, 2011 to March 31, 2018. The aforesaid subsidy is in relation to investments in property, plant and equipment at Ratnagiri plant. Accordingly, the same has been classified as grant related to assets and the company is recognising revenue from grant over the life of the property, plant and equipment.

b) The company has received the eligibility certificate for the industrial promotion subsidy under the package incentive scheme. The government grant receivable includes electricity duty refund of prior years amounting to RS.1,350.33 Lakhs (March 31, 2017 - RS.2,273.87 Lakhs)

Details of terms of borrowings and security for the borrowings

The aggregate limits of working capital borrowings of RS.1,39,575 Lakhs (RS.1,39,575 Lakhs as at March 31, 2017) from the Bank of India Consortium together with all interest, liquidated damages, costs, charges and other moneys payable under working capital consortium agreement/sanction letters are secured by:

1) Hypothecation of inventories and book debts; and

2) Extension of second equitable mortgage, created in favour of Bank of India Consortium on pari passu basis with other second charge holder by deposit of title deeds with Axis Bank Ltd (ABL), New Delhi. ABL acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Companyâs plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

D Composition of deferred tax assets and deferred tax liabilities

Sale of goods includes excise duty collected from customers of RS.9,361.80 Lakhs up to Quarter ended June 30, 2017 (March 31, 2017: RS.38,527.28 Lakhs) as per guidelines prescribed in Ind AS 18 âRevenueâ From July 1, 2017, Goods and Service Tax (GST) charged, is excluded from sales of goods. Also Refer Note 2.2 and 45.

Cost of raw material consumed excludes excise duty paid of RS.9,361.80 Lakhs up to Quarter ended June 30, 2017 (March 31, 2017: RS.38,527.28 Lakhs). Excise duty paid has been disclosed seperately on the face of statement of profit and loss account.

4 Segment Information

For management purposes, the Company is organised into business units based on their products and which has following three reportable segments :

1 PVC - engaged in producing and distributing PVC resin

2 Pipes and fittings - engaged in producing and distributing pipes and fittings required principally in the agriculture and construction industries

3 Power - engaged in generation of power for captive consumption

No operating segments have been aggregated to form the above reportable operating segments.

The management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss that is measured consistently with profit or loss in the financial statements. The Companyâs financing (including finance costs and finance income) and income taxes are not allocated to operating segments.

Inter-segment revenues are eliminated upon consolidation and reflected in the âadjustments and eliminationsâ column. All other adjustments and eliminations are part of detailed reconciliations presented further below.

Adjustments and eliminations

Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed for the entity as a whole.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed for the entity as a whole.

Capital expenditure consists of additions of property, plant and equipment and intangible assets.

Geographic information

For the year ended March 31, 2018, the Company has catered only to the needs of the Indian markets. As there was no export turnover during the year, there are no reportable geographical segments.

5 Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

There are no potential shares that have a dilutive effect on the EPS.

The following reflects the income and share data used in the basic and diluted EPS computation

6 Disclosure pursuant to Employee benefits

A. Defined contribution plans:

Amount of RS.357.73 Lakhs (March 31, 2017: RS.299.78 Lakhs) is recognised as expenses and included in Note No. 30 âEmployee benefit expenseâ

B. Defined benefit plans:

The Company has Gratuity as post employment benefit which is in the nature of defined benefit plan.

The same method has been applied for the sensitivity analysis as when calculating the recognised defined benefit obligation.

7. Related party transactions

Related parties have been identified on the basis of requirement of Ind AS 24 âRelated Party Disclosuresâ and representation made by the Key Management Personnel and taken on record by the Board.

Disclosures of transactions with related parties are as under:

A. Description of Related Parties

Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in armâs length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2018, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2017: Rs.Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Commitments with related parties

The Group has not provided any commitment to the related party as at March 31, 2018 (March 31, 2017: Rs.Nil)

Transactions with key management personnel

Compensation of key management personnel of the Company

The amounts disclosed in the table are the amounts recognised as an expense during the reporting period related to key management personnel.

8. Commitments and contingencies

8.1 Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for amounted to RS.3,791.92 Lakhs as at March 31, 2018, RS.5,887.24 Lakhs as at March 31, 2017.

The management assessed that cash and short-term deposits, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair values of the financial assets and liabilities are included 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 following methods and assumptions were used to estimate the fair values.

Non-current investments

The fair value of investments in quoted equity shares is based on the respective quoted price in the active markets as at the measurement date.

The fair value of investments in unquoted equity shares has been estimated using the net asset method. The valuation requires to consider the cost of replacement of an asset as an indication of the fair market value of that asset.

Current investments

The Companyâs current investments consist of investment in units of mutual funds. The fair value of investments in mutual funds is derived from the NAV of the respective units in the active market at the measurement date.

Description of significant unobservable inputs to valuation:

The significant unobservable inputs used in the fair value measurements categorised within Level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as at March 31, 2018, and March 31, 2017 are as shown below:

The discount for lack of marketability represents the amounts that the Company has determined that market participants would take into account when pricing the investments.

9. Fair value hierarchy

The following table provides the fair value measurement hierarchy of the Companyâs financial instruments measured at fair value after initial recognition:

10. Financial risk management objective and policies

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity price risk. Financial instruments affected by market risk include borrowings, trade payables and investments.

The sensitivity analyses in the following sections relate to the position as at March 31, 2018 and March 31, 2017. The sensitivity analyses have been prepared on the basis that the amount of net debt and the ratio of fixed-to-floating interest rates of the debt are all constant as at March 31, 2018 and March 31, 2017

The sensitivity of the relevant statement of profit and loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

The Company has short-term borrowings with fixed interest rates and hence the future cash flows of relevant financial instrument are not affected by changes in market interest rate.

Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates.

The Companyâs exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities on account of import of raw materials.

PVC pricing is on import parity and import parity value of sales of the Company approximately equates the USD payables on a six monthly rolling basis due to which a natural hedge exists and hence the Company does not generally need to resort to hedging by way of forward contracts, options, etc.

Commodity price risk

The Company is affected by the volatility of certain commodities. Its operating activities involve the ongoing purchase of Vinyl Chloride Monomer (âVCMâ), Ethylene and Ethylene Dichloride (âEDCâ), all being petrochemical products, and manufacturing of PVC and pipes and fittings and therefore require a continuous supply of these materials. Prices of PVC manufactured by the Company are monitored by Companyâs management and are adjusted to respond to change in import parity price of PVC in Indian market. Market price of input and output, generally get adjusted over a period of time. Accordingly, the Company is exposed to the variation in commodity prices over short-term period.

Equity price risk

At the reporting date, the exposure to unlisted equity securities at fair value was RS.862.68 Lakhs . A decrease of 10% in the fair value will have an impact of approximately RS.86.26 Lakhs on OCI and RS.0.01 on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the securities would also impact OCI, profit and loss and equity.

At the reporting date, the exposure to listed equity securities at fair value was RS.1,4734725 Lakhs. A decrease of 10% on the NSE market index could have an impact of approximately RS.14,727.12 Lakhs on OCI and RS.7.61 Lakhs on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI, profit and loss and equity.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company evaluates credit risk with respect to trade receivables as significanty low, as its payment terms are mostly advance basis.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Companyâs treasury department in accordance with the Companyâs policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Companyâs Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Companyâs risk management committee. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through potential counterpartyâs failure to make payments. The Companyâs maximum exposure to credit risk for the components of the statement of financial position is the carrying amounts as illustrated in Notes 9-12.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and polices related to such risk are overseen by Senior management. Management monitors the Companyâs net liquidity position on a monthly and quarterly basis through its Senior management meeting and board meetings. They use rolling forecasts on the basis of expected cash flows.

The Senior management ensures that the future cash flow needs are met through cash flow from the operating activities and short-term borrowings from banks.

The table below summarises the maturity profile of the Companyâs financial liabilities based on contractual undiscounted payments:

11. Capital management

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Companyâs policy is to keep low a gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash deposits, current investments.

12. Goods and Service Tax

With effect from July 1, 2017 Goods and Service Tax comprising of four acts (i.e. Central Goods and Service Tax Act, State Goods and Service Tax Act, Integrated Goods and Service Tax Act, Union Territory Goods and Service Tax Act) was introduced in India. Accordingly certain indirect taxes like Excise, Service Tax, Sales Tax were subsumed under GST Acts.

13. Previous year comparatives

Previous yearâs figures have been regrouped/ reclassified wherever neceesary to correspond with the current yearâs classification / disclosure.

Mar 31, 2017

1. Segment Information

For management purposes, the Company is organized into business units based on their products and which has following three reportable segments :

1 PVC - engaged in producing and distributing PVC resin

2 Pipes and fittings - engaged in producing and distributing pipes and fittings required principally in the agriculture and construction industries

3 Power - engaged in generation of power for captive consumption

No operating segments have been aggregated to form the above reportable operating segments.

Adjustments and eliminations

Finance income and costs, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed for the entity as a whole.

Current taxes, deferred taxes and certain financial assets and liabilities are not allocated to those segments as they are also managed for the entity as a whole.

Capital expenditure consists of additions of property, plant and equipment and intangible assets.

Inter-segment revenues are eliminated on consolidation.

Geographic information

In the years ended 31st March 2015, 31st March 2016 and 31st March 2017, the Company catered mainly to the needs of the Indian markets. Export turnover during each year was less than 10% of the total turnover. Hence, there are no reportable geographical segments.

2. Earnings Per Share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

There are no potential shares that have a dilutive effect on the EPS.

The following reflects the income and share data used in the basic and diluted EPS computation

3. Disclosure pursuant to Employee benefits

A. Defined contribution plans:

Amount of Rs, 299.78 Lakhs (March 31, 2016: Rs, 365.74 Lakhs) is recognized as expenses and included in Note No. 33 "Employee benefit expense"

B. Defined benefit plans:

The Company has Gratuity as post employment benefit which is in the nature of defined benefit plans:

The Company operates gratuity plan (funded) wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service.

The same is payable on termination of service or retirement whichever is earlier. The benefit vests after five years of continuous service.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on the defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period. The sensitivity analysis is based on a change in one significant assumption at a time, keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

The same method has been applied for the sensitivity analysis as when calculating the recognized defined benefit obligation.

4. Related Party Transactions

Related parties have been identified on the basis of requirement of Ind AS 24 ''Related Party Disclosures'' and representation made by the Key Management Persons and taken on record by the Board.

Disclosures of transactions with Related Parties are as under:

A. Description of Related Parties

i) Name of the Related party and nature of relationship where control exists

Nature of relationship Name of the Company

Associate Company Pawas Port Limited

Finolex Plasson Industries Private Limited Enterprise wherein the Company is an Finolex Cables Limited holding 32.39 % in the associate Company Enterprises over which Key Management Finprop Advisory Services Limited Personnel or their relatives exercise Magnum Machine Technologies Limited significant influence_

ii) Key Management Personnel:

Mr. Prakash P Chhabria - Executive Chairman

Mr. Saurabh S. Dhanorkar - Managing Director (Till November 30, 2016) Key Management Personnel ^ y wh_abi- Director Finance (From August 26, 2016) & CFO

Mr. Sanjay S Math - Managing Director (From December 1, 2016)

Terms and conditions of transactions with related parties

Transaction entered into with related party are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 31 March 2017, the Group has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2016: t Nil and April 1, 2015: t Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Commitments with related parties

The Company has not provided any commitment to the related party as at March 31, 2017 (March 31, 2016: * Nil and April 1, 2015: * Nil)

Transactions with key management personnel

Compensation of key management personnel of the Company

Non-current investments

The fair value of investments in quoted equity shares is based on the respective quoted price in the active markets as at the measurement date.

Current investments

The Company''s current investments consist of investment in units of mutual funds and quoted non-convertible debentures. The fair value of investments in mutual funds is derived from the NAV of the respective units in the active market at the measurement date. The fair value of the non-convertible debentures is derived from quoted market prices in active markets at the measurement date.

There were no transfers between level 1 and level 2 during the year ended March 31, 2017 and March 31, 2016.

5. Financial risk management objective and policies

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s management oversees the management of these risks. The Company''s management is supported by a risk management committee that advise on financial risks and the appropriate financial risk governance framework. The risk management committee provides assurance to the Company''s management that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with Company''s policies appetite. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise threetypes of risk: interest rate risk, currency risk and other price risk such as equity price risk and commodity price risk. Financial instruments affected by market risk include borrowings and investments.

The sensitivity analysis in the following sections relate to the position as at March 31, 2017 and March 31, 2016.

The sensitivity analysis have been prepared on the basis that the amount of net debt and the ratio of fixed-to floating interest rates of the debt are all constant as at March 31, 2017 and March 31, 2016.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company has short term borrowings with fixed interest rates and hence the future cash-flows of relevant financial instrument are not affected by changes in market interest rate.

Foreign currency risk

Foreign currency risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities on account of import of raw materials.

Commodity price risk

The Company is affected by the volatility of certain commodities. Its operating activities involve the ongoing purchase of Vinyl Chloride Monomer (''VCM''), Ethylene and Ethylene Dichloride (''EDC''), all being petrochemical products, and manufacturing of PVC and pipes and fittings and therefore require a continuous supply of these materials. Prices of PVC manufactured by the Company are monitored by company management and are adjusted to respond to change in import parity price of PVC in Indian market. Market price of input and output, generally get adjusted over a period of time. Accordingly, the company is exposed to the variation in commodity prices over short term period.

Commodity price sensitivity

The following table shows the effect of price changes for VCM, Ethylene EDC after the impact of hedge accounting:

Equity price risk

The Company''s listed and unlisted equity securities are susceptible to market-price risk arising from uncertainties about future values of the investment securities.

The equity securities held by the Company are strategic in nature. The Company''s Board of Directors reviews and approves all equity investment decisions.

At the reporting date, the exposure to unlisted equity securities at fair value was Rs, 862.68 Lakhs . A decrease of 10% in the fair value will have an impact of approximately Rs, 86.23 Lakhs on OCI and 10.01 on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the securities would also impact OCI, profit and loss and equity.

At the reporting date, the exposure to listed equity securities at fair value was Rs, 1,14,662.86 Lakhs. A decrease of 10% on the NSE market index could have an impact of approximately 1 11,462.27 Lakhs on OCI and Rs, 4.02 Lakhs on Profit and loss or equity attributable to the Company. An increase of 10% in the value of the listed securities would also impact OCI, profit and loss and equity.

Credit risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company evaluates credit risk with respect to trade receivables as significantly low, as its payment terms are mostly advance basis.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the Company''s policy.

Investments of surplus funds are made only with approved counter parties and within credit limits assigned to each counter party. Counter party credit limits are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company''s risk management Committee. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through potential counter party''s failure to make payments.

The Company''s maximum exposure to credit risk for the components of the statement of financial position is the carrying amounts as illustrated in Notes 13-15.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Company''s finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and polices related to such risk are overseen by Senior management. Management monitors the Company''s net liquidity position on a monthly and quarterly basis through its Senior management meeting and board meetings. They use rolling forecasts on the basis of expected cash flows.

The Senior management ensures that the future cash flow needs are met through cash flow from the operating activities and short term borrowings from banks.

The table below summarizes the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments:

6. Capital management

Capital includes equity shares and other equity attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s policy is to keep low a gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash deposits.

There are no financial covenants which are attached to the amounts borrowed by the company.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2017 and 31 March 2016.

7. Exceptional item

During the year ended March 31, 2016, the company received eligibility certificate for the Industrial Promotion Subsidy under the Package Scheme of Incentives. Accordingly, the Company become entitled to receive electricity duty refund amounting to Rs, 2,447.79 Lakhs relating to period April 1, 2011 to March 31, 2014. This has been recognized as an exceptional item in the financial statements.

8. 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 to the Company from April 1, 2017.

Amendment to Ind AS 9:

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.

Since the Company does not have cash settled awards or awards with net settlement features, this amendment does not have any effect on the financial statements of the Company

The identification of suppliers as micro, small and medium enterprise defined under "The Micro, Small and Medium Enterprises Development Act, 2006" was done on the basis of information to the extent provided by the suppliers of the Company.

Mar 31, 2016

Terms/ Rights attached to equity shares:

The Company has only class of equity shares having a par value of Rs. 10 per share. Each holder of the equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. For year ended March 31, 2016, the amount of per share dividend recognised as distributed to equity shareholders was Rs. 10 (March 31, 2015 Rs. 2)

In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the company after distribution of all preferential amounts.The distribution will be in proportion to the number of equity shares held by the shareholders.

1.1) Terms of borrowings:

Terms of debenture

1,000 privately placed 10.90 % secured redeemable non-convertible debentures of Rs. 10 lakhs each, aggregating to Rs. 10,000 lakhs (10.90% NCDs) will be redeemed in 3 years bullet from the date of allotment i.e. 31st December, 2013

Nature of security for secured borrowings and working capital:

Debentures

The outstanding amount payable on 10.90% NCDs of Rs. 10,000 lakhs with the interest accrued there on but unpaid and all other costs, charges, expenses and fees payable to the debenture trustees namely Axis Trustee Services Limited ("ATSL") secured under the Debenture Trust Deed and creation of simple mortgage on pari passu basis in favour of ATSL on immoveable properties of the Company falling within the battery limit of the site of the Company''s plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth.

Working capital

The aggregate limits of working capital borrowings of Rs. 1,39,575 lakhs from the Bank of India Consortium together with all interest, liquidated damages, costs, charges and other moneys payable under working capital consortium agreement/sanction letters are secured by:

(i) Hypothecation of inventories and book debts; and

(ii) Extension of second equitable mortgage, created in favour of Bank of India Consortium on pari passu basis with other second charge holder by deposit of title deeds with Axis Bank Ltd. (ABL), New Delhi. ABL acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Company''s plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

1.2 Electricity duty exemption amounting to Rs. 2,447.79 lakhs for earlier periods, although it is another form of subsidy, is accounted in the Statement of Profit and Loss and disclosed as an exceptional item. Exceptional item for the previous year includes settlement of claim against derivative and write off of insurance claim on aircraft.

1.3 Effective from 1st April, 2014 the company had charged depreciation based on the revised useful life of the assets as per the requirements of Schedule II of the Companies Act, 2013 and in certain cases on the basis of technical evaluation. Consequently, depreciation charged was lower by Rs. 477.28 lakhs for the previous year. Further, carrying value of the assets whose useful life was already exhausted as on 1st April,2014, amounting to Rs. 3,073.12 lakhs and deferred tax credit of Rs. 1,044.55 lakhs thereon has been recognised in the opening balance of Retained Earnings.

1.4 a) In terms of eligibility certificate and sanction letter received under Package Scheme of Incentives from Government of Maharashtra during the year, Industrial Promotion Subsidy of Rs. 8,614.80 lakhs in respect of the Company''s plant located at Ratnagiri, is accounted for as capital subsidy under Reserves and Surplus in the Balance Sheet.

b) The Company during the current year has paid off its sales tax deferral loan of Rs. 2,115.80 lakhs at the net present value of Rs. 1,059.12 lakhs and has taken the balance amount of Rs. 1,056.68 lakhs to the Statement of Profit and Loss under the heading other non operating income.

1.5 CSR Expenditure:

a) Amount required to be spent by the Company during the year is Rs. 317.24 lakhs.

b) Amount spent by the Company during the year is Rs. 352.83 lakhs.

1.6 Segment Reporting:

Primary Segment

Based on the guiding principle given in the Accounting Standard-17 "Segment Reporting" issued by the Institue of Chartered

Accountants of India, the Company''s primary segments are PolyVinyl Chloride (PVC), Pipes & fittings and Power.

The above business segments have been identified considering :

i) The nature of the products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the segment .

Revenue and expenses , which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under "Net unallocable (expenditure)/income". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Other than segment".

Mar 31, 2015

1.Share Capital

Terms/ Rights attached to equity shares:

The Company has only class of equity shares having a par value of Rs. 10 per share. Each holder of the equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2015, the amount of per share dividend recognised as distributed to equity shareholders was Rs. 2 (March 31,2014 Rs. 7)

In the event of liquidation of the company, the holders of equity shares are entitled to receive remaining assets of the company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Terms of borrowings:

Terms of debenture

1,000 privately placed 10.90 % secured redeemable non-convertible debentures of Rs. 10 lakhs each, aggregating to Rs. 10,000 lakhs ("10.90% NCDs") will be redeemed in 3 years bullet from the date of allotment i.e. 31st December, 2013.

Terms of loan repayment

The term loan from Central Bank of India amounting to Rs. 10,000 lakhs was availed in the financial year 2011-12 and 2012-13 and carried interest at the Base rate of 10.25% 0.75 % p.a. The loan is repayable in 3 equal annual instalments starting from 31st March, 2015. From 01st Feb 2015, the interest rate has been changed to 10.25% 0.25% p.a.

The term loan from Bank of Maharashtra amounting to Rs. 5,000 lakhs was availed in the financial year 2013-14 at the Base interest rate of 10.25% 0.75% p.a. repayable in 12 quarterly instalments starting from January, 2015.

The term loan from Citibank NA amounting to Rs. 10,000 lakhs was availed in the financial year 2013-2014 at the interest rate of 10.75% p.a. From 1st July 2014, the rupee loan has been converted into USD loan at spot rate at the interest rate of 6 months USD libor 270 basis points repayable on 1st July 2015.

Nature of security for secured borrowings and working capital:

Debentures:

The outstanding amount payable on 10.90% NCDs of Rs. 10,000 lakhs with the interest accrued thereon but unpaid and all other costs, charges, expenses and fees payable to the debenture trustees namely Axis Trustee services Limited(ATSL) secured under the Debenture Trust deed and creation of simple mortgage on pari passu basis in favour of ATSL on immovable properties of the company falling within the battery limit of the site of the company's plant for the manufacture of PVC resin, situated at village Golap, district Ratnagiri in the state of Maharashtra together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth.

Term Loans:

From Central Bank of India: The outstanding amount payable on term loan of Rs. 10,000 lakhs availed from Central Bank of India with all interest, liquidated damages, commitment charges, premia on prepayment, costs, expenses and other moneys and fees payable as applicable are secured by equitable mortgage created in favour of Central Bank of India, Pimpri, Pune by depositing all the documents of title, evidences, title deeds and writings in respect of immovable properties of the Company falling within the battery limit of Company's captive power plant situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

From Bank of Maharashtra: The outstanding amount payable on term loan of Rs. 5,000 lakhs availed from Bank of Maharashtra with all interest, liquidated damages, commitment charges, premia on prepayment, costs, expenses and other moneys and fees payable as applicable are secured by movable property of the Company viz., plant and machinery and other movable assets falling within the battery limit of the PVC manufacturing plant situated at Village Golap-Ratnagiri, District Ratnagiri, Maharashtra State.

From Citibank N.A.: The outstanding amount payable on term loan of Rs. 10,000 lakhs availed from Citibank N.A. with all interest, liquidated damages, commitment charges, premia on prepayment, costs, expenses and other moneys and fees payable as applicable are secured by:

Extension of second equitable mortgage, to be created in favour of Citibank by deposit of title deeds with Axis Bank Ltd., New Delhi ("ABL") on pari passu basis with other second charge holders, ABL acting as an agent of Citibank N.A. which ranks subsequent and subservient in rank of priority over the first equitable mortgages created / to be created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Company's plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

Working capital:

The aggregate limits of working capital borrowings of Rs. 1,39,575 lakhs from the Bank of India Consortium together with all interest, liquidated damages, costs, charges and other moneys payable under working capital consortium agreement/sanction letters are secured by:

(i) Hypothecation of inventories and book debts; and

(ii) Extension of second equitable mortgage, created in favour of Bank of India Consortium on pari passu basis with other second charge holder by deposit of title deeds with Axis Bank Ltd. (ABL), New Delhi. ABL acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Company's plant for manufacture of PVC Resin, situated at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

Amount Amount (Rs.In lakhs (Rs.In lakhs) 2014-15 2013-14

3. Contingent liabilities and commitments:

I) Claims against the Company not acknowledged as debt:

a) Liabilities in respect of income tax matters for which the Company 10.17 10.17 has succeeded in appeal but Income Tax Department has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments

b) Liabilities in respect of income tax matters for which the Company has 930.29 910.97 gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments

c) Excise/Customs/Service Tax in respect of which either show cause notice is 6,322.90 5,702.89 received or the Company/Department is in appeal

d) Sales Tax matters in respect of which either show cause notice is received or 8,122.91 2,422.32 the Company/Department is in appeal

e) Amounts claimed by banks in respect of derivative transactions which 13,022.56 15,980.22 are under dispute not acknowledged as debt in USD 20,821,480/- (USD 26,671,840/-)

In view of counter claims of the Company against the banks, the facts and circumstances of the case and uncertainty of period for which the litigations will continue, a reliable estimate of the liability,if any, cannot be made. It is unlikely that there will be a material liability on the Company on this account in the near future. Therefore, in view of what is stated above no provision is required to be made out of the current year's profit.

The company has been legally advised in respect of this issue confirming the aforesaid.

Commitments:

Estimated amount of contracts remaining 104.89 927.28 to be executed on capital account and not provided for (net of capital advances)

4. Related Party Disclosures

Disclosures as required by Accounting Standard 18 ''related party disclosures'' are given below:

A) Names of related parties and nature of relationship where control exists

Name of the related party Nature of relationship

1. Pawas Port ltd. Substantial interest

B) Names of related parties with whom transactions have been entered into

Mr. Prakash P. Chhabria - Executive Chairman Key Management Personnel

Mr. Saurabh S. Dhanorkar - Managing Director Key Management Personnel

Mr. Sanjay S. Math - Director (Operations) Key Management Personnel

Finolex Cables Limited Associate Company

Finolex Plasson Industries Private Limited Associate Company

Finprop Advisory Services Limited Enterprises over which key

Magnum Machine Technologies Limited management personnel or their

relatives exercise significant

influence

5. Exceptional item includes foreign exchange loss (net) and settlement of claim against derivative Rs. 2,937.65 lacs (previous year Rs. 6,977.01 lacs) and write off of insurance claim on aircraft of Rs. 500 lacs (previous year Rs. Nil).

6. Effective from 1st April, 2014 the company has charged depreciation based on the revised useful life of the assets as per the requirements of Schedule II of the Companies Act, 2013 and in certain cases on the basis of technical evaluation. Consequently, depreciation charged is lower by Rs. 477.28 lakhs for the current year. Further, carrying value of the assets whose useful life was already exhausted as on 1st April,2014, amounting to Rs. 3,073.12 lakhs and deferred tax credit of Rs. 1,044.55 lakhs thereon has been recognised in the opening balance of Retained earnings.

7. Segment Reporting:

Primary Segment

Based on the guiding principle given in the Accounting Standard-17 "Segment Reporting" issued by the Institue of Chartered Accountants of India, the Company's primary segments are PolyVinyl Chloride (PVC), Pipes & fittings and Power.

The above business segments have been identified considering :

i) The nature of the products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the segment . Revenue and expenses , which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under "Unallocable Expenses ". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under " Unallocable Assets / Liabilities".

Mar 31, 2014

1.1 Contingent Liabilities and commitments: Rs In lakhs

Particulars 2013-14 2012-13

Claims against the Company not acknowledged as debt:

a) Liabilities in respect of income tax matters for which the Company has 10.17 179.38 succeeded in appeal but Income Tax Department has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments

b) Liabilities in respect of income tax matters for which the Company has gone 910.97 436.23 in further appeal and exclusive of the effect of similar matters in respect of pending assessments

c) Excise/Customs/Service Tax in respect of which either show cause notice is 5,702.89 4,379.44 received or the Company/Department is in appeal

d) Sales Tax matters in respect of which either show cause notice is received 2,422.32 - or the Company/Department is in appeal

e) Amounts claimed by banks in respect of derivative transactions which are 15,980.22 14,478.81 under dispute not acknowledged as debt.

Claims in foreign exchange have been revalued at exchange rate as on Balance Sheet date.

In view of counter claims of the Company against the banks, the facts and circumstances of the case and uncertainty of period for which the litigations will continue, a reliable estimate of the liability,if any, cannot be made. It is unlikely that there will be a material liability on the Company on this account in the near future. Therefore, in view of what is stated above no provision is required to be made out of the current year''s profit. The company has been legally advised in respect of this issue confrming the aforesaid section.

f) Estimated amount of contracts remaining to be executed on capital account 927.28 1369.93 and not provided for (net off capital advances)

Basis used to determine the overall expected return:

Life Insurance Corporation of India (LIC) manages the investments of Employee Gratuity Scheme. Expected rate of return on investments is determined based on the assessment made by the LIC at the beginning of the year on the return expected on its existing portfolio, along with the estimated incremental investments to be made during the year. Yield on the portfolio is calculated based on a suitable mark-up over the benchmark Government securities of similar maturities.

1.2 Related party disclosures

Disclosures as required by accounting standard 18 ''''related party disclosures'''' are given below:

A) Names of related parties and nature of relationship where control exists

Name of the related party Nature of relationship

1. Pawas Port Ltd. Substantial interest

B) Names of related parties with whom transactions have been entered into

1. Mr. Prakash P. Chhabria - Executive Chairman

2. Mr. Saurabh S. Dhanorkar - Managing Director

3. Mr. Panyam Subramaniam - Assistant Managing Director & CFO Key management personnel (Upto 4th June, 2013)

4. Mr. Sanjay S. Math - Director Operations

5. Finolex Cables Limited Associate Company-

6. Finolex Plasson Industries Ltd. Signifcant Infuence

Enterprises over which key management personnel or their relatives exercise signifcant infuence

1. Finprop Advisory Services Ltd.

2. Magnum Machine Technologies Ltd. Signifcant Infuence

3. Kaya Software Pvt. Ltd.

1.3 Segment reporting:

Primary segment

Based on the guiding principle given in the Accounting Standard-17 "Segment Reporting" issued by the Institute of

Chartered Accountants of India, the Company''s primary segments are PolyVinyl Chloride (PVC), Pipes & fittings and Power.

The above business segments have been identifed considering :

i) The nature of the products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable expenses". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable assets / liabilities".

Mar 31, 2013

Note 1.1) Ministry of Corporate Affairs Government of India (MCA) notifcation on AS 11

Pursuant to circular No. 25/2012 dated 09.08.2012 issued by MCA, in respect of clarifcation on para 46A of notifcation number G.S.R 914(E) dated 29.12.2011 on accounting standard 11 relating to "The effects of changes in foreign exchange rates" the Company has capitalized exchange difference to the extent considered as borrowing cost debited to the proft and loss statement in the previous year. Accordingly, in the current fnancial year an amount of ? 320.83 lakhs has been capitalized. This amount includes 224.31 lakhs (net of depreciation of earlier year) credited to general reserve towards exchange difference previously recognised in the proft & loss statement.

The balance of foreign exchange difference capitalised pursuant to MCA notifcation on accounting standard 11 (AS 11) remaining to be depreciated over the balance life is ? 1286.76 lakhs. Note 1.2) Terms of debentures redemption:

500 privately placed secured redeemable non-convertible debentures of ? 10 lakhs each, aggregating to 5000 lakhs with LIC of India will be redeemed in three installments commencing at the end of 3rd, 4th and 5th year from the date of allotment i.e. 21st September, 2009 in the ratio of 3:3:4. 1000 privately placed secured redeemable non-convertible debentures of 10 lakhs each, aggregating to 10000 lakhs with LIC of India will be redeemed in full at par at the expiry of fve years from the date of allotment i.e. 17th November, 2008.

Note 1.2) Segment reporting:

Primary segment

Based on the guiding principle given in the Accounting Standard-17 "Segment Reporting" issued by the Institue of Chartered Accountants of India, the Company''s primary segments are PolyVinyl Chloride (PVC), pipes & fttings and power.

The above business segments have been identifed considering :

i) The nature of the products

ii) The related risks and returns

iii) The internal fnancial reporting systems

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the segment. Revenue and expenses which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocable expenses". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under "Unallocable assets/liabilities".

Mar 31, 2012

Note 1.1) Contingent Liabilities and commitments:

i) Guarantees given by the Company's Bankers on behalf of the Company towards performance and other matters: Rs. 1421.44 lakhs (Rs. 1565.07 lakhs).

ii) Claims against the Company not acknowledged as debt:

a) Liabilities in respect of income tax matters for which the Company has suc- ceeded in appeal but Income Tax Department has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments, Rs. 179.38 lakhs (Rs. 30.37 lakhs).

b) Liabilities in respect of income tax matters for which the Company has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments, Rs. 412.22 lakhs (Rs. 887.75 lakhs).

c) Excise/Customs/Service Tax in respect of which either show cause notice is received or the Company/Department is in appeal, Rs. 2674.87 lakhs (Rs. 2435.29 lakhs).

d) Amounts claimed by banks in respect of derivative transactions which are under dispute not acknowledged as debt, Rs. 22254.30 lakhs (Rs. 23977.54 lakhs).

In view of counter claims of the Company against the Banks, the facts and circumstances of the case and uncertainty of period for which the litigations will continue, a reliable estimate of the obligation, if any, cannot be made. It is unlikely that there will be a material liability on the Company on this account in near future. Therefore, in view of what is stated above no provision is required to be made out of the current year's profit.

The Company has been legally advised in respect of this issue confirming the aforesaid action.

e) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance payments), Rs. 3317.09 lakhs (Rs. 1424.59 lakhs).

Note 1.2) Changes in Accounting Policy / Assumption:

a) Pursuant to notification dated 29th December, 2011 issued by Ministry of Corporate Affairs, Government of India in respect of changes to Accounting Standard 11, the Company has exercised the option of capitalizing exchange differences arising on reporting of long term foreign currency loans in so far as they relate to the acquisition of depreciable capital assets. Accordingly in the current financial year an amount of Rs. 1146.92 lakhs has been capitalized. This amount includes Rs. 986.20 lakhs credited to General Reserve towards exchange difference previously recognised in the profit & loss Account for the previous years. This amount will be depreciated from the date of capitalization over the remaining life of the asset. Had this change not been effected, the profit before tax for the year would have been lower by Rs. 123.00 lakhs, the Gross Block of assets would have been lower by Rs. 1146.92 lakhs and correspondingly depreciation would have been lower by Rs. 37.72 lakhs.

b) The balance of foreign exchange difference capitalised pursuant to above, remaining to be depreciated over the balance life is Rs. 1086.66 lakhs.

c) Liability on account of Leave encashment to employees was considered as short term compensation expense provided on actual basis upto 31st March 2011. The same has been considered on actuarial basis from 1st April 2011. Had this change not been effected, the profit before tax for the year would have been lower by Rs. 78.64 lakhs.

Note 1.3) Debentures: Terms of Redemption:

1000 Privately placed Secured Redeemable Non-Convertible Debentures ("Debentures") of Rs. 1,000,000 (Rupees ten lakhs only) each, aggregating Rs. 100 crore with LIC of India will be redeemed in full at par at the expiry of five years from the date of allotment i.e. 17th November, 2008.

500 Privately placed Secured Redeemable Non-Convertible Debentures of Rs. 1,000,000 (Rupees ten lakhs only) each, aggregating Rs. 50 crore with LIC of India will be redeemed in three equal instalments at par at the expiry of third, fourth and fifth year from the date of allotment i.e., 18th September, 2009.

Note 1.4) Security for Secured Loans:

(I) The outstanding amount payable on the debentures mentioned at Note 1.4 with the interest accrued thereon but unpaid and all other costs, charges, expenses and fees payable to the debenture trustees namely Axis Trustee Services Limited ("ATSL") under the Debenture Trust deed dated 16th February, 2009 for 12.25% NCDs of Rs.100 crore and Debenture Trust Deed dated 5th March, 2010 for 9.50% NCDs of Rs.50 crore respectively have been secured by creation of english mortgage on pari passu basis in favour of ATSL on the Company's immovable properties situate at 1B, 1st Floor, Mahakant Building, Ellisbridge, Ahmedabad in the State of Gujarat.

(II) The outstanding amount payable on the:

(a) 12.25% NCDs of Rs.100 crore redeemable on 17th November, 2013 i.e. after 5 years from deemed date of allotment 17th November, 2008;

(b) 9.50% NCDs of Rs.50 crore redeemable in 3 installments commencing at the end of 3rd, 4th and 5th year from the date of allotment i.e. 21st September, 2009 in the ratio of 3:3:4.

(c) Borrowings by way of foreign currency term loan availed from ICICI Bank Limited, Singapore Branch (the "ICICI Bank") in the year 2007-2008 at the interest rate of 1.37% p.a. repayable in 3 equal installments beginning from financial year 2011-2012 (accordingly the first installment has been paid), for which Axis Bank Limited (the "ABL") is acting as security trustee; and

(d) Borrowings by way of term loan availed from Central Bank of India, Pimpri Branch, Pune (the "Central Bank") at the interest rate of 11.75% p.a. repayable in 3 equal installments from the date of disbursement: together with all interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, expenses and other moneys and fees payable as applicable under the respective Deeds and Agreement are secured by:

(a) equitable mortgage created in favour the ATSL and the ABL; and

(b) equitable mortgage to be created in favour of Central Bank: on pari passu basis by depositing with ABL, New Delhi, ABL acting for itself and as an agent of ATSL and Central Bank, all the documents of title, evidences, title deeds and writings in respect of immovable properties falling within the battery limit of the site of the Company's plant for manufacture of PVC, situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth; and

(c) will be further secured by equitable mortgage to be created in favour the ATSL, ABL and the Central Bank on pari passu basis by depositing with ABL, New Delhi, ABL acting for itself and as an agent of ATSL and Central Bank, all the documents of title, evidences, title deeds and writings in respect of immovable properties falling within the battery limit of the Company's 43 MW power plant situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth; and

(III) The aggregate limits of working capital borrowings of Rs. 139575 lakhs from the Bank of India Consortium together with all interest, liquidated damages, costs, charges, and other monies payable under working capital consortium agreement/sanction letters are secured by:

(a) Hypothecation of inventories and book debts; and

(b) by extension of second equitable mortgage created in favour of Bank of India Consortium by deposit of title deeds with ABL, ABL acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created / to be created by deposit of title deeds in respect of immoveable properties falling within the battery limit of the site of the Company's plant for manufacture of PVC Resin, situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

Note 1.5) Sundry Creditors:

A) Outstandings to creditors other than Micro, Small & Medium Enterprise Rs. 12946.47 lakhs (Rs. 24017.23 lakhs ) [Interest Paid/Payable is Rs. Nil (Rs. Nil)]

B) Outstandings to Micro, Small & Medium Enterprise : Rs. 28.34 lakhs (Rs. 68.88 lakhs)

The Identification of suppliers as micro, small and medium enterprise Defined under "The Micro, Small and Medium Enterprises Development Act, 2006" was done on the basis of information to the extent provided by the suppliers of the Company. There were no outstanding dues to micro, small and medium enterprises which were outstanding for more than the stipulated period.

Note 1.6) Political contribution in terms of provisions of Section 293A of the Companies Act, 1956. Donation of Rs. 5.00 lakhs (Rs. Nil) paid to Shiv Sena, a Political party.

Note 1.7) Segment Reporting :

Primary Segment

Based on the guiding principle given in the Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India,the Company's primary segments are PolyVinyl Chloride ( PVC ), Pipes & fittings and Power.

The above business segments have been identified considering :

i ) The nature of the products

ii ) The related risks and returns

iii ) The internal financial reporting systems

Revenue and expenses have been accounted for on the basis of their relationship to the operating activities of the segment . Revenue and expenses , which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under "Unallocable Expenses ". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under " Unallocable Assets / Liabilities".

Note 1.8) Related Party Disclosures :

Disclosures as required by the Accounting Standard 18 "Related Party Disclosures"are given below :

a) List of Related Parties

1 Finolex Cables Ltd. Key management personnel

2 Finolex Plasson Industries Pvt.Ltd. 1. Mr. P. P. Chhabria Ã Chairman

3 Finprop Advisory Services Ltd. 2. Mr. K. P. Chhabria Ã Executive Vice Chairman

4 Pawas Port Ltd. 3. Mr. Prakash P. Chhabria Ã Managing Director

5 Orbit Electricals Pvt.Ltd. 4. Mr. S. S. Dhanorkar Ã Assistant Managing Director & COO

6 Kaya Software Pvt.Ltd. 5. Mr. P. Subramaniam Ã Assistant Managing Director & CFO

Note 1.9)

During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company. Revised Schedule VI has significantly impacted the presentation and disclosures made in the financial statements, particularly presentation of Balance Sheet. The Company has reclassified previous year's figures to conform to this year's classification.

Mar 31, 2011

1) Contingent Liabilities:

i) Guarantees given by the Company Rs. 1565.07 Lakhs (Rs. 1923.31 Lakhs)

ii) Claims against the Company not acknowledged as debt:

a) Liabilities in respect of income tax matters for which the Company has succeeded in appeal but Income Tax Department has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments, Rs. 30.37 Lakhs (Rs.30.37 Lakhs).

b) Liabilities in respect of income tax matters for which the Company has gone in further appeal and exclusive of the effect of similar matters in respect of pending assessments, Rs. 887.75 Lakhs (Rs. 887.75 Lakhs).

c) Excise/Customs/Service Tax in respect of which either show cause notice is received or the Company/Department is in appeal, Rs. 2435.29 Lakhs (Rs. 2478.44 Lakhs).

d) Amounts claimed by banks in respect of derivative transactions which are under dispute not acknowledged as debt Rs. 23977.54 Lakhs. (Rs. 29474.16 Lakhs).

2) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance payments), Rs. 1424.59 Lakhs (Rs. 2714.73 Lakhs).

3) A. Quantitative information of derivative instruments outstanding as at the balance sheet date:

B. The Company has entered into forward contract / option transactions with an objective to hedge the financial risks associated with its business viz. foreign exchange, interest rate.

C. The Company has not hedged the following foreign currency exposures:

i) Borrowings grouped under secured loans equivalent to Rs. 2301.70 lakhs (Rs. 3452.48 Lakhs) and under unsecured loans equivalent to Rs. 2268.55 Lakhs. (Rs. 15892.52 Lakhs).

ii) Creditors for imports equivalent to Rs. 8341.28 Lakhs (Rs. 12714.73 Lakhs).

4) Debentures: Terms of Redemption

1000 Privately placed Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 (Rupees ten lakhs) each ("1000 Debentures") will be redeemed in full at par at the expiry of five years from the date of allotment i.e. 17th November, 2008.

500 Privately placed Secured Redeemable Non-Convertible Debentures of Rs.10,00,000 (Rupees ten lakhs) each ("500 Debentures") will be redeemed in three equal instalments at par at the expiry of third, fourth and fifth year from the date of allotment i.e., 18th September, 2009.

5) Security for Secured Loans:

(I) The outstanding amount payable on the above referred Ã1000 Debentures" with the interest accrued thereon but unpaid and all other costs, charges, expenses and fees payable to the Axis Trustee Services Limited (ÃATSL or ÃTrustees") under the Debenture Trust deed dated 16th February, 2009 and for Ã500 Debentures" under the Debenture Trust Deed dated 5th March, 2010 respectively have been secured by creation of english mortgage on pari passu basis in favour of Trustees on the Companys immovable properties situate at 1B, 1st Floor, Mahakant Building, Ellisbridge, Ahmedabad in the State of Gujarat.

(II) The above referred Debentures and the borrowing from ICICI Bank Limited, Singapore Branch (ÃICICI Bank") [Axis Bank Ltd.(" Axis Bank") acting as Security Trustee of ICICI Bank] by way of foreign currency loan together with all interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, expenses and other moneys and fees payable as applicable to the trustees under the Debentures Trust Deeds and Security Trustee Agreement have been secured by creating first equitable mortgage on pari passu basis in favour of the ATSL and the Axis Bank by depositing with Axis Bank, Axis Bank acting for itself as a Trustee of the above referred foreign currency loan of ICICI Bank and as an agent of ATSL, all the documents of title, evidences, title deeds and writings in respect of immovable properties falling within the battery limit of the site of the Companys plant for manufacture of PVC, situate at Village Golap, District Ratnagiri in the State of Maharashtra (ÃTitle Deeds") together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth.

(III)The aggregate limits of working capital borrowing of Rs. 139575 lakhs from the Bank of India Consortium together with all interest, liquidated damages, costs, charges, and other monies payable under working capital consortium agreement/sanction letters is secured by:

(a) Hypothecation of inventories and book debts.

(b) By extension of second equitable mortgage created in favour of Bank of India Consortium by deposit of Title Deeds with Axis Bank, Axis Bank acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created / to be created by deposit of Title Deeds in respect of immoveable properties falling within the battery limit of the site of the Companys plant for manufacture of PVC Resin, situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

8) Sundry Creditors

A) Outstanding to creditors other than Micro, Small & Medium Enterprise Rs. 24017.23 lakhs (Rs. 18765.19 Lakhs) [Interest Paid/Payable is Nil ( Rs. Nil)

9) Donation includes political donation of Rs. Nil paid to political parties (Rs. 10 lakhs each paid to Nationalist Congress Party and Shiv Sena).

(19) Segment Reporting :

Primary Segment

Based on the guiding principle given in the Accounting Standard - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India,the Companys primary segments are PolyVinyl Chloride ( PVC ), Pipes & fittings and Power.

The above business segments have been identified considering :

i ) The nature of the products

ii ) The related risks and returns

iii ) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment . Revenue and expenses , which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under Unallocable Expenses. Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis , have been included under Unallocable Assets / Liabilities.

(20) Related Party Disclosures :

Disclosures as required by the Accounting Standard 18 " Related Party Disclosures " are given below : a) List of Related Parties

1 Finolex Cables Limited

2 Finolex Plasson Industries Limited

3 Finprop Advisory Services Limited

4 Pawas Port Limited

5 Akash-Tatva Investments Pvt Ltd.

6 Coated Fabrics Pvt Ltd.

7 Corrugated Box Industries (I) Pvt.Ltd.

8 Finolib Chemicals Pvt. Ltd.

9 Orbit Electricals Pvt Ltd.

10 Kaya Software Pvt. Ltd.

11 Devita Investments Pvt Ltd.

12 Mohini Investments Pvt Ltd.

13 Fino Communication Equipments Pvt Ltd.

14 K.P. Investments Pvt Ltd.

15 Majesty Investments Pvt Ltd.

16 Magnum Machines Pvt Ltd.

17 V.K.C. Investments Pvt Ltd.

18 Hi-Tech Poly Coatings Pvt Ltd.

19 Pratibha Xero-Graphic Impression Pvt Ltd.

Key management personnel

1 Mr. P. P. Chhabria - Chairman

2 Mr. K. P. Chhabria - Vice-Chairman

3 Mr. Prakash P. Chhabria - Managing Director

4 Mr. S. S. Dhanorkar -Wholetime Director

5 Mr. P. Subramaniam -Wholetime Director

Mar 31, 2010

1) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance payments), Rs. 2714.73 lakhs (Rs. 2487.80 lakhs).

a. The Company has entered into derivative transactions with an objective to hedge the financial risks associated with its business, viz., foreign exchange, interest rate.

b. The Company has not hedged the following foreign currency exposures:

i) Borrowings grouped under secured loans equivalent to Rs. 3452.48 lakhs (Rs. 5,083.36 lakhs) and under unsecured loans equivalent to Rs. 15892.52

lakhs. (Rs. 22613.48 lakhs). ii) Creditors for imports equivalent to Rs. 12714.73 lakhs (Rs. 10049.51 lakhs).

2) Debentures: Terms of Redemption

1000 Privately placed Secured Redeemable Non-Convertible Debentures ("Debentures") of Rs. 10,00,000 (Rupees ten lakhs only) each will be redeemed in full at par at the expiry of five years from the date of allotment, i.e., 17th November, 2008.

500 Privately placed Secured Redeemable Non-Convertible Debentures of Rs. 10,00,000 (Rupees ten lakhs only) each will be redeemed in full at par at the expiry of five years from the date of allotment, i.e., 18,h September, 2009.

3) Security for Secured Loans:

(I) The outstanding amount payable on the above referred Debentures with the interest accrued thereon but unpaid and all other costs, charges, expenses and fees payable to the Axis Trustee Services Limited ("ATSL or "Trustees" for 1000 Debentures under the Debenture Trust deed dated 16th February, 2009 and for 500 Debentures under the Debenture Trust Deed dated 5th March, 2010 respectively) have been secured by creation of English mortgage on pari passu basis in favour of Trustees on the Companys immovable properties situate at IB, 1st Floor, Mahakant Building, Ellisbridge, Ahmedabad in the State of Gujarat.

(II) The above referred Debentures and the borrowings from ICICI Bank Limited, Singapore Branch ("ICICI Bank") (Axis Bank is acting as Security Trustee of ICICI Bank) by way of foreign currency loan together with all interest, liquidated damages, commitment charges, premia on prepayment or on redemption, costs, expenses and other moneys and fees payable as applicable to the trustees under the Debentures Trust Deeds and Security Trustee Agreement have been secured by creating equitable mortgage on pari passu basis in favour Axis Bank and the ATSL by depositing with Axis Bank, Axis Bank acting for itself as a Trustee of the above referred foreign currency loan of ICICI Bank and as an agent of ATSL, all the documents of title, evidences, title deeds and writings in respect of immovable properties falling within the battery limit of the site of the Companys plant for manufacture of PVC, situate at Village Golap, District Ratnagiri in the State of Maharashtra ("Title Deeds") together with all buildings and structures thereon and all plants and machinery attached to the earth or permanently fastened to anything attached to the earth.

(Ill) The aggregate limits of working capital borrowing of Rs. 129575 lakhs from the Bank of India Consortium together with all interest, liquidated damages, costs, charges, and other monies payable under working capital consortium agreement/sanction letters are secured by:

(a) Hypothecation of inventories and book debts.

(b) By extension of second equitable mortgage created in favour of Bank of India Consortium by deposit of Title Deeds with Axis Bank, Axis Bank acting as an agent for Bank of India Consortium, which ranks subsequent and subservient in rank of priority over the first equitable mortgages created/to be created by deposit of Title Deeds in respect of immoveable properties falling within the battery limit of the site of the Companys plant for manufacture of PVC Resin, situate at Village Golap, District Ratnagiri in the State of Maharashtra together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth.

4) Sundry Creditors

A) Outstanding to creditors other than Micro, Small & Medium Enterprise Rs. 18765.19 lakhs (Rs. 17687.58 lakhs) [Interest Paid/Payable is Rs. Nil (Rs. Nil)].

B) Outstanding to Micro, Small & Medium Enterprise: Rs. 39.44 lakhs (Rs. 90.46 lakhs)

The identification of suppliers as "Micro, Small and Medium Enterprises Development Act, 2006" was done on the basis of information to the extent provided by the suppliers of the company. Total outstanding dues of Micro, Small and Medium which were outstanding more than stipulated period are given below.

5) Donation includes political donation of Rs. 10 lakhs each (Nil) paid to Nationalist Congress Party and Shiv Sena.

6) Segment Reporting:

Primary Segment

Based on the guiding principle given in the Accounting Standard - 17 "Segment

Reporting" issued by the Institute of Chartered Accountants of India, the Companys primary segments are Polyvinyl Chloride ( PVC ) and Pipes & fittings.

The above business segments have been identified considering:

i) The nature of the products

ii) The related risks and returns

iii) The internal financial reporting systems

Revenue and expenses have been accounted for based on the basis of their relationship to the operating activities of the segment. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Expenses". Assets and liabilities which relate to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets/Liabilities".

7) Figures in respect of the previous year have been regrouped or rearranged wherever necessary to conform to the current periods classification.

Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article