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Notes to Accounts of Manjushree Technopack Ltd.

Mar 31, 2015

1. All the figures in the Financial Statement have been rounded off to the nearest rupees.

2. Figures of the previous year have been reclassified, regrouped, aggregated and segregated, wherever necessary, to confirm to the current year figures.

3. No amount is paid/payable by the Company under Section 441A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

4. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subject to external confirmation/ reconciliation after the year end as per standard accounting practice followed by the Company. In the opinion of the Board, all the current assets, loans and advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

5. Estimated amount of contracts remaining to be executed on Capital Account as on March 31, 2015 is Rs. 2,683.93 Lakhs (Previous year: 3,472.41 Lakhs) against which advance of Rs. 2,219.00 Lakhs (Previous year :Rs. 1,289.86 Lakhs) has been made.

6. Additional information pursuant to the requirements of Schedule III to the Companies Act, 2013:

7. The Company is engaged in the manufacture and sale (both Domestic & Exports) of "PET / Plastics Preforms & Containers," on own account and on account of others which constitutes single business segment. As per Management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported as per Accounting Standard 17.

8. Pursuant to disclosure requirements of Accounting Standard 18 on related parties, the following disclosures are given: i. List of related parties and their relationship

a. Enterprises under common control of the management (EUC)

- Mphinite Technologies Private Limited

- Mphinite Solutions Private Limited

- Manjushree Fincap Private Limited

- Shruti Financial Services Private Limited

- Hitech Creations Private Limited

- Jinvani Trading and Investment Company Private Ltd

- SNT Merchants Private Ltd

- Prapti Vinimay Private Ltd

b. Key Management personnel (KMP)

- Vimal Kedia

- Surendra Kedia

- Rajat Kedia

- Ankit Kedia

c. Relatives of Key Management Personnel (RKMP)

- Savita Kedia (wife of Vimal Kedia)

- Sashi Kedia (wife of Surendra Kedia)

d. List of transactions with related parties

9. Details of future minimum lease payment in respect of non-cancellable operating lease period as per Accounting Standard 19 issued under the Companies (Accounting Standards) Rules, 2006 is as follows:

10. In the Management''s view there is no impairment to assets as per Accounting Standard 28 issued. Except Rs. 8.15 lakhs debited to statement of Profit and Loss.

11. The Company is in the process of obtaining the Cost Audit report as required under section 148 of The Companies Act, 2013 read with Companies (Cost Records and Audit) Amendment Rules, 2014.


Mar 31, 2014

I. Contingent Liabilities not provided for:

As on March 31, 2014 Particulars Total Margin / Net Liability Deposits Liability

1 Disputed liability towards customs duty under appeal. 2.86 - 2.86

2 Disputed liability towards Central Excise duty under appeal. 17.85 2.60 15.25

3 Disputed liability towards Service Sales tax under appeal.* 8.73 - 8.73

4 Disputed liability towards Central tax under appeal.* 11,537.66 - 11,537.66

5 Disputed liability towards Income tax under appeal.* 9.99 - 9.99

6 Customs duty on unfulfilled Export obligations against imports vide advance/EPCG licenses 108.79 - 108.79

7 Bank guarantees outstanding. 205.05 28.75 205.05

8 Bank LC against procurement of raw material outstanding. 287.50 - 258.75

TOTAL 12,158.43 31.35 12,127.08

Particulars As on March 31.2013 Total Margin Net Liability Deposits Liability

1 Disputed liability towards 2.86 - 2.86 customs duty under appeal.*

2 Disputed liability towards 31.57 - 31.57 Central Excise duty under appeal.*

3 Disputed liability towards - - - Service Sales tax under appeal.*

4 Disputed liability towards - - - Central tax under appeal.*

5 Disputed liability towards 594.78 - 594.78 Income tax under appeal.*

6 Customs duty on unfulfilled Export - - - obligations against imports vide advance / EPCG licenses.

7 Bank guarantees outstanding. 63.62 5.00 58.62

8 Bank LC against procurement of raw 296.97 29.70 267.27

* Above mentioned Contingent Liabilities are inclusive of Interest and penalty.

2. In the Management''s view there is no impairment to assets as per Accounting Standard 28 issued under the Companies (Accounting Standards) Rules, 2006. Consequently, there is no impairment loss debited to statement of Profit and Loss.

3. The company is in the process of obtaining the Cost Audit report as required under Companies (Cost Audit) Rules 2011 and Section 233 B of the Companies Act.


Mar 31, 2013

1. All the figures in the Financial Statement have been rounded off to the nearest rupees.

2. Figures of the previous year have been reclassified, regrouped, aggregated and segregated, wherever necessary, to conform to the current year figures.

3. No amount is paid/payable by the Company under Section 441A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

4. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subject to external confirmation/ reconciliation after the year end as per standard accounting practice followed by the company. In the opinion of the Board, all the current assets, loans and advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

5. Estimated amount of contracts remaining to be executed on Capital Account as on March 31,2013 is Rs.696.27 lacs (Previous year: Rs.3,350.81 lacs) against which advance of Rs.91.97 lacs (previous year Rs.1,385.55 lacs) has been made.

6. Additional information pursuant to the requirements of revised Schedule VI to the Companies Act, 1956:

7. The Company is engaged in the manufacture and sale (both Domestic & Exports) of "PET / Plastics Preforms & Containers,"on own account and on account of others which constitutes single business segment. As per Management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported as per Accounting Standard 17 issued under the Companies (Accounting Standards) Rules, 2006.

8. Pursuant to disclosure requirements of Accounting Standard 18 on related parties issued under the Companies (Accounting Standards) Rules, 2006, the following disclosuresare given:

i. List of related parties and their relationship

a. Enterprises under common control of the management (EUC)

- Mphinite Technologies Private Limited

- Mphinite Solutions Private Limited

- Manjushree Fincap Private Limited

- Shruti Financial Services Private Limited

- Hitech Creations Private Limited

b. Key Management personnel (KMP)

- Vimal Kedia

- Surendra Kedia

- Rajat Kedia

- Ankit Kedia

c. Relatives of Key Management Personnel (RKMP)

- Savita Kedia (wife of Vimal Kedia)

- Sashi Kedia (wife of Surendra Kedia)

9. In the Management''s view there is no impairment to assets as per Accounting Standard 28 issued under the Companies (Accounting Standards) Rules, 2006. Consequently, there is no impairment loss debited to statement of Profit and Loss.

10. The company is in the process of obtaining the Cost Audit report as required under Companies (Cost Audit) Rules 2011 and Section 233 B of the Companies Act.


Mar 31, 2012

# 1.1 : Term Loan from State Bank of India is secured by way of Hypothecation of Company''s present and future movable fixed assets like Plant and Machineries (except machineries on which charge belongs to EDC), Equipment etc. alongwith equitable mortgage of immovable properties located at Bommasandra, Bangalore and land located at Primrose Road, Bangalore, further secured by way of personal guarantee of 2 directors. The said loan is repayable in 6 years in quarterly installments, the last of which is due on March 2016.

# 1.2 : Buyer''s Credit on capital goods-the same is taken on the basis of letter of credit issued by State Bank of India, security for the said Buyer''s credit are same as stated supra in note #4.1, the repayment of same shall be made from newly sanctioned term loan to be disbursed upon maturity of buyer''s credit.

# 1.3: Term Loan from Export Development of Canada: this is an external commercial borrowing secured by way of hypothecation of specified machineries, the loan shall be repayable in 6 years in equal semi annual installments, commencing from Dec. 2012.

1. All the figures in the Financial Statement have been rounded off to the nearest rupees lakhs.

2. These financial statements have been presented in accordance with the requirements of the revised Schedule - VI notified by the Ministry of Corporate affairs vide Notification no. F.No.2/6/2008-CL-V dated March 30, 2011. Accordingly, figures of the previous year have been reclassified, regrouped, aggregated and segregated, wherever necessary, to confirm to the requirements of the revised Schedule VI.

3. No amount is paid / payable by the Company under Section 441A of the Companies Act, 1956 (cess on turnover) since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

4. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subjected to external confirmation/ reconciliation after the year end as per standard accounting practice followed by the company. In the opinion of the Board, all the current assets, loans and advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

5. Details relating to dues to Micro, Small and Medium enterprises as per Micro, Small and Medium Enterprises Development Act, 2006 on the basis of such parties having been identified by the Management and relied upon by the Auditors. The Company has not received any claim for interest from any supplier under the said Act. The following table provides the details

6. Estimated amount of contracts remaining to be executed on Capital Account as on March 31, 2012 is Rs 3350.81 lakhs (Previous year: Rs114.75 lakhs) against which advance of Rs.1373.93 lakhs (previous year Rs 55.29 lakhs) has been made.

7. Additional information pursuant to the requirements of revised Schedule VI to the Companies Act, 1956:

8. The Company is engaged in the manufacture and sale (both Domestic and Exports) of "PET / Plastics Preforms and Containers," on own account and on account of others which constitutes single business segment. As per Management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported as per Accounting Standard 17 issued under the Companies (Accounting Standards) Rules, 2006.

9. Pursuant to disclosure requirements of Accounting Standard 18 on related parties issued under the Companies (Accounting Standards) Rules, 2006, the following disclosures are given:

i. List of related parties and their relationship

Enterprises under common control of the management (EUC)

- Mphinite Technologies Private Limited

- Mphinite Solutions Private Limited

- Manjushree Fincap Private Limited

- Shruti Financial Services Private Limited

- Hitech Creations Private Limited

Key Management Personnel (KMP)

- Vimal Kedia

- Surendra Kedia

- Rajat Kedia

- Ankit Kedia

Relatives of Key Management Personnel (RKMP)

- Sashi Kedia (wife of Surendra Kedia)

- Savita Kedia (wife of Vimal Kedia)

10. In the Management''s view there is no impairment to assets as per Accounting Standard 28 issued under the companies (Accounting Standards) Rules, 2006. Consequently, there is no impairment loss debited to the statement of profit and loss.

11. Details of provisions, contingent liabilities and contingent assets as per Accounting Standard 29 issued under the Companies (Accounting Standards) Rules, 2006:

i. The movement in provisions account is detailed below:

ii. Contingent Liabilities not provided for:

Figures in Rs In Lakhs

Particulars As on March 31, 2012 As on March 31, 2011 Total Margin/ Net Total Margin/ Net Liability Deposits Liability Liability Deposits Liability

1 Disputed liability towards customs duty under appeal - - - 2.86 - 2.86

Total 2.86 - 2.86

12. The Company is in the process of obtaining the compliance certificate regarding maintenance of Cost Accounting records for the current financial year as required under Notification No. G.S.R. 429(E), dated 3rd June 2011 issued by the Ministry of Corporate Affairs.

13. Prior period items for the current year aggregating to Rs 161.49 lakhs (PY-Nil) comprises of following items:

a. Rs 165.03 Lakhs - on account of depreciation short provided in the earlier years on certain items of plant and machineries.

b. Rs (3.54) Lakhs - on account of reversal of excess provision for gratuity made on adhoc basis in the earlier years. Rs 161.49 Lakhs - Total


Mar 31, 2011

1. All the figures in the Financial Statement have been rounded off to the nearest rupees lacs. The previous year''s figures have been regrouped / rearranged, wherever necessary, to facilitate comparison with current year''s figures.

2. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subjected to external confirmation/ reconciliation after the year end as per standard accounting practice followed by the company. In the opinion of the Board, all the current assets, loans and advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

3. Pursuant to sales tax exemption and deferment certificate obtained by the Company from the Government of Karnataka in respect of expansion of its plant capacity under various incentive scheme(s), the Company has provided for its sales tax liability in the books of account under relevant provisions based on its own assessment, pending final assessment by appropriate authority. The company had availed tax deferment of Rs.190.93lacs (Previous Year Rs.190.93 lacs) which is repayable after expiry of a period of 7 years from 28.12.2001 in 3 yearly installments. The Company has already made payments of Rs.127.28lacs up to 31.3.2010 and the balance of Rs.63.65lacs has been remitted during the financial year.

4. Estimated amount of contracts remaining to be executed on Capital Account but not provided for as on 31.3.2011 is Rs.114.75lacs (Previous year Rs.764.60lacs) against which advance of Rs55.29lacs (previous year Rs.79.78lacs) has been made.

5. Contingent Liabilities not provided for:: Rs.in Lacs

As on 31.03.2011 As on 31.03.2010

Particulars Total Margin / Net Total Margin/ Net Liability Deposits Liability Liability Deposits Liability

1 Bank Guarantees outstanding 51.79 5.18 46.61 21.08 4.17 16.91

2 Bank LCs against procurement of raw materials outstanding 1,109.42 37.53 1,071.89 18.54 1.92 16.62

3 Bank LCs against capital equip- ment outstanding 3,053.95 64.42 2,989.53 1,978.25 724.32 1,253.93

4 Disputed liability towards customs duty under appeal 2.86 - 2.86 2.86 - 2.86

5 Customs duty on unfulfilled Export obligations against imports vide Advance/EPCG licenses 594.92 - 594.92 751.23 - 751.23

Total 4,812.94 107.13 4,705.81 2,771.96 730.41 2,041.55

6. The Company is engaged in the manufacture and sale (both Domestic & Exports) of "PET / Plastics Preforms & Containers,"on own account and on account of others which constitutes single business segment. As per Management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographical segments to be reported under AS 17.

7. Disclosure in respect of related parties pursuant to AS 18 issued under the Companies Act, 1956: (i) List of related parties and their relationship

Name of the related parties Nature of relationships

Mphinite Technologies Private Limited. Associate

Mphinite Solutions Private Limited. Associate

Manjushree Fincap Private Limited. Associate

Shruti Financial Services Private Limited Associate

Hitech Creations Private Limited Associate

Vimal Kedia Key Management Personnel

Surendra Kedia Key Management Personnel

Rajat Kedia Key Management Personnel

Ankit Kedia Key Management Personnel


Mar 31, 2010

1. All the figures in the Financial Statement have been rounded off to the nearest rupees lacs. The previous years figures have been regrouped / rearranged, wherever necessary, to facilitate comparison with current years figures.

2. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subjected to external confirmation/ reconciliation after the year end as per standard accounting practice followed by the company. In the opinion of the Board, all the current assets, loans and advances have a value on realization in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

3. Pursuant to sales tax exemption and deferment certificate obtained by the company from the Government of Karnataka in respect of expansion of its plant capacity under various incentive scheme(s), the company has provided for its sales tax liability in the books of account under relevant provisions based on its own assessment, pending final assessment by appropriate authority. The company had availed tax deferment of Rs.190.93lacs which is repayable after expiry of a period of 7 years from 28.12.2001 in 3 yearly installments. The Company has already made payments of Rs.127.28lacs upto 31.3.2010 and the balance of Rs.63.65lacs is shown under the head "Unsecured Loans".

4. Estimated amount of contracts remaining to be executed on Capital Account but not provided for as on 31.3.2010 is Rs.764.60lacs (Previous year Rs.691.55lacs) against which advance of Rs.79.78lacs (previous year Rs.308.44lacs) has been made.

5. Contingent Liabilities not provided for::

Sl. Particulars As on 31.03.2010 No. Total Margin / Net Liability Deposits Liability

1 Bank Guarantees outstanding 21.08 4.17 16.91

2 Bank LCs against procurement of raw materials outstanding 18.54 1.92 16.62

3 Bank LCs against capital equipment outstanding 1,978.25 724.32 1,253.93

4 Disputed liability towards customs duty under appeal 2.86 - 2.86

5 Customs duty on unfulfilled Export obligations against imports vide Advance/EPCG licenses 751.23 751.23

Total 2,771,96 730,41 2,041.55

(Rs. in Lacs)

Particulars As on 31.03.2009

Total Margin / Net

Liability Deposits Liability Bank Guarantees outstanding 21.47 3.66 17.81

Bank LCs against procurement of raw materials outstanding 62.33 6.42 55.91 Bank LCs against capital equipment outstanding 989.01 - 989.01

Disputed liability towards customs duty under appeal 2.86 - 2.86

Customs duty on unfulfilled Export obligations against imports vide Advance/EPCG licenses 835.12 - 835.12

Total 1,910.79 10.08 1,900.71

6. Particulars of Directors Remuneration:

The aforesaid remuneration / perks have been allowed to the Managing Director and Executive Director as minimum remuneration pursuant to sections 269,198 read with Schedule XIII and other applicable provisions of Companies Act, 1956 in accordance with special resolutions passed by members of company in Extraordinary General Meeting held on 16th March, 2007.

7. The Company is engaged in the manufacture and sale (both Domestic & Exports) of "PET / Plastics Preforms & Containers," which constitutes single business segment. As per Management perspective the risks and returns from its sales do not materially vary geographically. Accordingly, there are no other business / geographically segments to be reported under AS 17.

8. Pursuant to special resolutions passed in AGM held on 30.08.2008, the company has:

a) Obtained approvals of Ahmedabad, Calcutta and Guwahatl Stock Exchanges for delisting of Its equity shares from the said exchanges. Post delisting, the equity shares are listed and traded only at the Bombay Stock Exchange.

b) The name of the company has been changed to "Manjushree Technopack Limited" pursuant to a fresh Certificate of Incorporation dated 21st May 2009 received from the Registrar of Companies, Kamataka, Bangalore.

9. Previous year figures have been re-grouped, re-arranged and re-casted wherever considered necessary.

10. Schedules "A" to "O" form part of the Accounts.


Mar 31, 2009

1. All the figures have been rounded off to the nearest rupee. The previous years figures have been regrouped / rearranged, wherever necessary, to facilitate comparison with current years figures.

2. Balances in debtors, creditors and advances accounts as appearing in the books of account at the close of relevant accounting year are subjected to external confirmation / reconciliation after the year end as per standard accounting practice followed by the company. In the opinion of the Board, all the current assets, loans and advances have a value on realisation in the ordinary course of business of a sum at least equal to the amount at which they are stated in the books of account.

3. Pursuant to sales tax exemption and deferment certificate obtained by the company from the Govt, of Karnataka in respect of expansion of its plant capacity under various incentive scheme(s), the company has provided for its sales tax liability in the books of account under relevant provisions based on its own assessment, pending final assessment by appropriate authority. The company is entitled to get overall tax deferment of Rs. 202.78 Lacs, which is repayable after expiry of a period of 7 years from 28.12.2001 in 3 yearly installments. The company had availed a credit of Rs. 190.93 Lacs up to 31st March 2008, out of which, a sum of Rs. 63.64 Lacs, being the first instalment, has been paid during FY 2008-09 and the balance is shown under the head "Unsecured Loans."

4. As the companys business activity falls within a single primary business segment viz. "Manufacturing of PET / Plastics Containers," the disclosure requirement of AS 17 in respect of "Segment Reporting," issued by ICAI are not applicable to the company.

5. The company had raised Rs. 3570 Lacs during the FY 2008 through a composite issue of 93,36,900 equity shares, comprising of Rights Issue of 42,10,800 equity shares of the face value of Rs. 10 each issued at a premium of Rs. 20 per share and Public Issue of 51,26,100 equity shares of Rs. 10 each issued at a premium of Rs. 35 per share. The details of fund deployment are as under:

6. Capital commitment outstanding as on 31.03.2009 - Rs. 691.55 Lacs, Advances against the same - Rs. 289.88 Lacs. Net outstanding - Rs. 401.67 Lacs (31.03.2008 - Rs. 4.64 Lacs)

7. Contingent Liabilities not provided for:

(Rs. in Lacs) Particulars As on 31.03.2009

Total Margin / Net Liability Deposits Liability

1. Bank Guarantees outstanding 21.47 3.66 17.81 2. Bank LCs against raw materials outstanding 62.33 6.42 55.91 3. Bank LCs against capital equipment outstanding 989.01 - 989.01 4. Disputed liability towards customs duty under appeal 2.86 - 2.86

Total 1075.67 10.08 1065.59

As on 31.03.2008

Total Margin / Net Liability Deposits Liability

13.65 2.73 10.92 180.42 21.67 158.75 2.86 - 2.86 196.93 24.40 172.53

8. Securities offered by the Company against Secured Loans:

The Company has been sanctioned overall credit limits of Rs. 4320 Lacs by State Bank of India, IFB, Bangalore (SBI) comprising of Cash Credit limit of Rs. 2200 Lacs, Term Loan of Rs. 1800 Lacs, Letter of Credit limit of Rs. 300 Lacs and Bank Guarantee limit of Rs. 20 Lacs, on various terms including, interalia, securities against the limits as mentioned hereunder:

A. First Charge by way of Equitable Mortgage / Hypothecation in favour of SBI of the entire immovable and movable properties of the company;

B. First Charge by way of Hypothecation in favour of SBI of the entire current assets and receivables of the Company, both present and future; and

C. Personal Guarantee by the Promoter Directors of the Company in favour of SBI.

9. (a) Outstanding dues to MSMEs as on 31.03.2009 - Rs. 16,73,000 (2008 - Rs. 41,73,850).

(b) There is only one MSME with dues exceeding Rs. 1 Lac for more than 30 days as on 31.03.2009, the details of which are given below: Vishal Polymers - Rs. 2,97,870

10. The company has made short term investments of Rs. 100 Lacs in units of Mutual Funds during the year, which have been liquidated during the year itself, against which a dividend income of Rs. 107,308 has been earned by the company.

11. Related Party Disclosures under AS 18 issued by ICAI:

A. Names of related parties and nature of related party relationship:

Subsidiary Associates

None

Manjushree Fincap Pvt. Ltd. (MFPL) Shruti Financial Services Pvt. Ltd. (SFSPL) Mphinite Technologies Pvt. Ltd. (MTPL) Mphinite Solutions Pvt. Ltd. (MSPL)

Others (enterprise over which key management personnel are able to exercise significant influence)

None

Key management Personnel

Vimal Kedia Mg. Director, Surendra Kedia, Executive Director, Savita Kedia and Sashi Kedia, Directors.

Relatives / HUF of

key management personnel

Smt. Anchi Devi Kedia, Sri Rajat Kedia, Smt. Nidhi Kedia, Sri Ankit Kedia, Miss Vrinda Kedia, Miss SJiruti Kedia, Master Vedant Kedia, Vimal Kr. Kedia & Sons HUF, Surendra Kr. Kedia & Sons HUF, Jaigovind Kedia & Sons HUF, Jaigovind Vimal Kumar HUF

12. Pursuant to special resolutions passed in AGM held on 30th August 2008, the company has:

a) Obtained approvals of Ahmedabad, Calcutta and Gauhati Stock Exchanges for delisting of its equity shares from the said exchanges. Post delisting, the equity shares are listed and traded only at the Bombay Stock Exchange.

b) The name of the company has been changed to "Manjushree Technopack Limited" pursuant to a fresh Certificate of Incorporation dated 21st May, 2009 received from the Registrar of Companies, Karnataka, Bangalore.

13. Schedules "A" to "P" form part of the Accounts.

Notes:

1. The above statement has been prepared in indirect method.

2. Proceeds from borrowing (long term/short term) have been shown net of repayments.

3. Purchases of Fixed Assets are shown net of Capital Work in progress.

4. Cash & Cash equivalents represent Cash and Bank Balances only.


Mar 31, 2008

1. All the figures have been rounded off to the nearest rupee. The previous years figures have been regrouped / rearranged, wherever necessary, to facilitate comparison.

2. Balances in debtors, creditors and advance accounts as appearing in the books of account at the close of relevant accounting year are subjected to external confirmation / reconciliation after the year end as per standard accounting practice followed by the company. In the opinion of the Board, all the current assets, loans ft advances have a value on realisation in the ordinary course of business of a sum at least equal to the amount at which they are stated.

3. Pursuant to sales tax exemption ft deferment certificate obtained by the company from the appropriate authority of Govt, of Karnataka in respect of expansion of its plant capacity under various incentive scheme(s), the company has provided for its sales tax liability in the books of account under relevant provisions based on its own assessment, pending final assessment by appropriate authority. Under Certificate No. BNG / DIC (U) / FAVC / IPO-2 / 24 / 2002-03 dt. 05th June 2002, the company is entitled to get overall tax deferment of Rs. 202.78 Lacs, out of which a credit of Rs. 190.93 Lacs has been availed up to 31st March 2008. The deferred tax credits have been shown under the head "Unsecured Loans", and are repayable after expiry of a period of 7 years from 28.12.2001 in 3 yearly instalments.

4. The company has raised Rs. 3570 Lacs during the year through a composite issue of 9,336,900 equity shares, comprising of Rights Issue of 42,10,800 equity shares of the face value of Rs. 10 each issued at a premium of Rs. 20 per share; and Public Issue of 51,26,100 equity shares of Rs. 10 each issued at a premium of Rs. 35 per share. The fund deployment detailsare asunder:

5. Contingent Liabilities not provided for:

As on 31.03.2008

Total Margin Net Liability Particulars Liability Deposits

1 .Guarantee given by Bank 13.65 2.73 10.92 on behalf of the company 2.Letters of Credit opened wit 180.42 21.67 158.75 Bank outstanding 3.Disputed IT assessment - - demand for AY 2002-03 4.Disputed IT penalty demand - - for AY 2002-03 5.Disputed Liability toward 2.86 - 2.86 customs duty Total 196.93 24.40 172.53

As on 31.03.2007 Total Margin Net Liability Deposits Liability

13.65 2.73 10.92 897.86 224.46 673.40 5.70 2.00 3.70 5.00 - 5.00 2.86 - 2.86 925.07 229.19 695.88

6. Pursuant to AS 15 (Revised) issued by ICAI, applicable w.e.f. 1st April 2007, the entire accrued liability of Rs. 38.21 lacs in respect of employees leave entitlement till 31st March 2008 has been provided for in the books by debit to Profit Et Loss Account for the year ended 31st March 2008. This includes a sum of Rs. 26.03 lacs due for the 12 month period from 1st April 2007 to 31st March 2008 which has been shown under the head "Salary, Wages Et Allowances" besides the sum of Rs. 12.18 lacs pertaining to accounting years upto 31st March 2007, which has been shown under the head "Exceptional items".

7. (a) Outstanding dues to Micro/Small enterprises ason 31.03.2008-Rs. 4,173,850 (2007-Rs. 10,978,655).

(b) List of Micro /Small Enterprises with dues exceeding Rs. 1 Lac for more than 30 days as on 31.03.2008 are: Prasad Machinery Pvt. Ltd., Pet Mould Pvt. Ltd., Pyramid Packaging Pvt Ltd., Maczin Tools and Mandagini Agencies.

8. Capital commitment outstanding as on 31.03.2008 - Rs. 6.64 Lacs, Advances against the same - Rs. 2.00 Lacs. Net outstanding - Rs. 4.64 Lacs (31.03.2007- Rs. 64.63 Lacs).

9. As the Companys business activity falls within a single primary business segment viz. "Manufacturing of PET/ Plastics Containers," the disclosure requirement of AS 17 "Segment Reporting," issued by ICAI are not applicable.

10. Details of short term investments made and liquidated during the year in Liquid Plus - Institutional Schemes of Reliance, Birla Sun Life and ING Vysya Mutual Funds:

Date of Investment: 18.03.08, Date of Redemption: 25.03.08 Amount Invested: Rs. 2500 Lacs, Amount Liquidated: Rs. 2500 Lacs Dividends earned on redemption: Rs. 2.96 lacs.

11. Securities offered by the Company against Secured Loans:

The Company has been sanctioned overall credit limits of Rs. 5660 Lacs by State Bank of India, IFB, Bangalore (SBI) vide letter dt. 23rd May 2007 comprising of Cash Credit limit of Rs. 2200 Lacs, Term Loan (I) of Rs.740 Lacs, Term Loan (II) of Rs. 600 Lacs, Term Loan (III) of Rs. 1800 Lacs, Letter of Credit limit of Rs. 300 Lacs and Bank Guarantee limit of Rs. 20 Lacs, on various terms including, interalia. securities against the limitsas mentioned hereunder: A.

A. First Charge by way of Equitable Mortgage/Hypothecation in favour of SBI of the entire immovable and movable properties of the company located at

(i) Plot 143C5, Bommasandra (KIADB) Industrial Area, Bangalore;

(ii) Plot 60E, Bommasandra (KIADB) Industrial Area, Bangalore; and

(iii) Residential Property at # 221, Ranka Paradise, Primrose Road, Bangalore.

B. First Charge by way of Hypothecation in favour of SBI of the entire current assets and receivables of the Company, both present and future; and

C. Personal Guarantee by the Promoter Directors of the Company in favour of SBI.

The Term Loan (III) of Rs. 1800 Lacs has been sanctioned by SBI to part finance the companys expansion cum diversification project, out of which Rs. 626.39 Lacs has already been disbursed till 31st March 2008. The company has also prepaid Term Loans I ft II to SBI within 31st March 2008 resulting in reduction of overall sanctioned limits to Rs. 4320 lacs.


Mar 31, 2005

1. All the figures have been rounded off to the nearest rupee. The previous years figures have been regrouped/rearranged, wherever necessary, to facilitate comparison with the current years figures.

2. The Company has provided for its estimated liability in respect of Bonus and Gratuity payable to employees on accrual basis during the current year as per the usual practice adopted by the Company in previous year.

3. Parties balances in a few cases are subject to confirmation, reconciliation and final adjustments, if any.

4. Pursuant to Sales Tax Exemption and Deferment Certificates obtained by the Company from the appropriate authority of Government of Karnataka in respect of expansion of its plant capacity under various incentive scheme(s), the company has assessed/provided for liability in respect of sales tax during the year under the relevant provisions based on its own assessment. Additional/incremental liability, if any, due on final assessment, which is not possible to quantify at the present stage, will be provided for in due course. Under Deferment Certificate No. BNG/DIC (U)/FAVC/IPO-2/24/2002-03 dt. 5/6/2002, the Company is entitled to get overall tax deferment of Rs. 202.78 lacs, out of which the company has taken credit of Rs. 111.43 lacs upto 31st March 2005, which includes Central Sales Tax of Rs. 8,038,348 and Karnataka Sales Tax of Rs. 2,666,002 for the year. The deferred tax credits have been shown under the head "Unsecured Loans", and are repayable after expiry of a period of 7 years from 28.12.2001 in 3 yearly instalments.

5. Contingent Liabilities not provided for:

(a) Bank Guarantee with SBI Outstanding - Rs. 6,03,000 (2004-Rs. 603,000) (Margin Deposits with the Bank against the same - Rs. 1,20,600 (2004-Rs. 120,600).

(b) Letters of Credit with SBI Outstanding - Rs. Nil (2004-Rs. Nil) (Margin Deposits with the Bank against the same - Rs. Nil (2004-Nil).

(c) Estimated Disputed Liability towards Customs Duty on Raw Materials in Bond not provided for - Rs. 2,85,597 (2004 - Rs. 285,597), pending settlement.

(d) Disputed Penalty Demands raised by the Commercial Tax Department, Government of Karnataka, under Karnataka Tax on Entry of Goods (KTEG) Act, 1979 in respect of assessment years 1995-96, 1996-97 and 1997-98 amounting to Rs. 210,000, against which a sum of Rs. 105,000 has been deposited with the ACCT, Bangalore, pending adjudication of the appeal, and shown under the head "Loans & Advances".

6. The company has commissioned additional production equipment under its ongoing expansion project for manufacture of monolayer plastic containers during the year resulting in increase in overall installed capacity from 2730 MTPA to 3450 MTPA.

7. (a) Outstanding dues to SSI units as on 31.03.2005 - Rs. 25,13,198 (2004-2,364,228).

(b) List of SSI Units with dues exceeding Rs. 1 Lac for more than 30 days as on 31.03.2005: Print Link, Oswal Polymers, Pet Mould Pvt. Ltd., VFC Industries Pvt. Ltd., Pyramid Packaging Pvt. Ltd., Suraksha Packers Pvt. Ltd., Strip-well Rotopacks Progressive Industries, Afnosh Packaging Industries, Oswal Polytech.

8. Capital Commitment outstanding (net of advances) as on 31st March 2005-Nil (2004-Rs. Nil).

9. Securities offered by the Company against Secured Loans: The Company has availed overall credit limits of Rs. 2409 lacs, in Indian and/or Foreign currencies, from State Bank of India, IFB, Bangalore, comprising of Cash Credit limit of Rs. 850 lacs, Term Loan (I) of Rs. 99 lacs, Term Loan (2) of Rs. 740 lacs, Term Loan (3) of Rs. 600 lacs, Letter of Credit limit of Rs. 100 Lacs and Bank Guarantee limit of Rs. 20 lacs, on various terms and conditions, including interalia, securities as under:

A. First Charge by way of Equitable Mortgage/Hypothecation of the entire immovable and movable properties of the company located at (i) Plot 143C5, Bommasandra (KIADB) Industrial Area, Bangalore (ii) Plot 60E, Bommasandra (KIADB) Industrial Area, Bangalore (iii) Residential Property of the Company at # 221, Ranka Paradise, Primrose Road, Bangalore besides extension of charge over the current assets;

B. First Charge by way of Hypothecation of the entire current assets and receivables of the Company, both present and future, besides extension of charge over fixed assets;

C. Personal Guarantee by the Promoter Directors of the Company.

10. Income/Expenditure relating to earlier year(s), the accrual/liability whereof has crystallised during the year in the opinion of the management, have been credited/debited to Profit & Loss Account, alongwith write off of bad debts/misc. balances under the head "Previous Years Adjustments/Write-offs" with a net debit balance amounting to Rs. 2,78,067 (2004 - Rs. 60.440).

11. Particulars of Directors Remuneration:

Items 31.03.2005 (Rs.) 31.03.2004 (Rs.)

Remuneration to Managing Director 2,94,000 222,000

Remuneration to Executive Director 2,70,000 198,000

Monetary Value of Perquisites 1,20,428 113,414

Total 6,84,428 533,414

The aforesaid remuneration/perks have been allowed pursuant to Sections 269, 198(4), and 309(3) and other applicable provisions, if any, of Companies Act, 1956 read with Schedule XIII of the Act by way of minimum remuneration to the Managing Director/Executive Director in accordance with the Special Resolutions passed by the Members of the Company in the Annual General Meeting held on 30th Day of September, 2004.

12. Particulars of Payments made to the Auditors:

Items 31.03.2005 (Rs.) 31.03.2004 (Rs.)

Statutory Audit Fees 90,915 81,000

Tax Audit 30,305 27,000

Other Services 62,560 56,260

Total 1,83,780 164,260

13. Pursuant to AS 22 issued by the Institute of Chartered Accountants of India, the company has recognized a provision for Net Deferred Tax Liability amounting to Rs.25,62,717 in the Profit & Loss Account during the year (2004 - Rs. 3,909,040) as calculated hereunder. The deferred tax assets have been recognised keeping in view the concept of prudence and on the basis of virtual certainty that sufficient further taxable income will be available against which deferred tax assets will be realized: (Rs.)

a) Deferred tax liabilities:

- Depreciation 26,50,466

Total (a) 26,50,466

b) Deferred tax assets:

- Provision for Gratuity 87,750

Total (b) 87,750

Deferred tax Liability (Net a-b) 25,62,717

14. Segment Reporting: The Company has only a single reportable segment, i.e. Manufacture of PET/Plastics Containers in terms of AS -17 issued by the Institute of Chartered Accountants of India.

16. Earning Per Share under AS - 20

Particulars Unit 31.03.2005 31.03.2004

Profit after taxation attributable to equity shareholders Rs. 1,12,42,497 97,76,842

Equity share outstandings Nos. 42,10,800 42,10,800

Basic/Diluted Earning per share (FV: Rs. 10/- Share) Rs. 2.67 2.32


Mar 31, 2004

1. All the figures have been rounded off to the nearest rupee. The previous years figures have been regrouped / rearranged, wherever necessary, to facilitate comparison with the current years figures.

2. The Company has provided for its estimated liability in respect of Bonus and Gratuity payable to employees on accrual basis during the current year as per the usual practice adopted by the Company in previous year.

3. Parties balances in a few cases are subject to confirmation, reconciliation and final adjustments, if any.

4. Pursuant to Sales Tax Exemption and Deferment Certificates obtained by the Company from the appropriate authority of Government of Karnataka in respect of expansion of its plant capacity under various incentive scheme(s), the company has assessed / provided for liability in respect of sales tax during the year under the relevant provisions based on its own assessment. Additional / incremental liability, if any, due on final assessment, which is not possible to quantify at the present stage, will be provided for in due course. The company has also taken credit of Deferred CST amounting to Rs. 324,000 and KST amounting to Rs. 115,014 for the year ended 31s1 March 2004 being the first year of its eligibility, which has been shown under the head "Unsecured Loans", and such deferred credit is repayable after a period of 7 years from 22.12.1999 in 3 instalments.

5. Contingent Liabilities not provided for:

(a) Bank Guarantee with SBI Outstanding - Rs. 603,000 (2003- Rs. 603,000) (Margin Deposits with the Bank against the same - Rs. 120,600 (2003- Rs. 120,600).

(b) Letters of Credit with SBI Outstanding - Rs. Nil (2003- Rs.271,95,307) (Margin Deposits with the Bank against the same - Rs. Nil (2003- 5,539,200).

(c) Estimated Disputed Liability towards Customs Duty on Raw Materials in Bond not provided for - Rs. 2,85,597 (2003- Rs. 285,597), pending settlement.

(d) Disputed Penalty Demands raised by the Commercial Tax Department, Government of Karnataka, under Karnataka Tax on Entry of Goods (KTEG) Act, 1979 in respect of assessment years 1995-96, 1996-97 and 1997-98 amounting to Rs. 210,000, against which a sum of Rs. 105,000 has been deposited with the ACCT, Bangalore, pending adjudication of the appeal, and shown under the head "Loans & Advances".

6. The company has commissioned its expansion - cum - diversification project for manufacture of monolayer / multilayer plastic containers at Plot No. 60E, Bommasandra Industrial Area, Hosur Road, Bangalore - 560 099 during the year w.e.f. 26th July 2003 resulting in increase in overall installed capacity from 2100 MTPA to 2730 MTPA.

7. (a) Outstanding dues to SSI units as on 31.03.2004 - Rs. 2,364,228 (2003 - 3,448,404).

(b) List of SSI Units with dues exceeding Rs. 1 Lac for more than 30 days as on 31.03.2004: Amit Packs Pvt. Ltd., Mandagini Agencies, Pyramid Packaging Pvt. Ltd., Stripwell Rotopacks, Paper Products Ltd., Pet Moulds Pvt. Ltd., Vishal Polymers.

8. Capital Commitment outstanding as on 31st March 2004 - Nil (2003 - Rs.337,87,137). Advances against Capital Expenditure including margin deposits with the Bank against Letters of Credit - Nil (2003-Rs. 93,75,123)

9. Securities offered by the Company against Secured Loans:

The Company has availed overall credit limits of Rs. 1609 lacs (since renewed at existing levels), in Indian and / or Foreign currencies, from State Bank of India, IFB, Bangalore, comprising of Cash Credit limit of Rs. 650 lacs, Term Loan (1) of Rs. 99 lacs, Term Loan (2) of Rs. 740 lacs, Letter of Credit limit of Rs. 100 Lacs and Bank Guarantee limit of Rs. 20 lacs, on various terms and conditions, including interalia, securities as under:

A. First Charge by way of Equitable Mortgage / Hypothecation of the entire immovable and movable properties of the company located at (i) Plot 143C5, Bommasandra (KIADB) Industrial Area, Bangalore (ii) Plot 60E, Bommasandra (KIADB) Industrial Area, Bangalore (iii) Residential Property of the Company at # 221, Ranka Paradise, Primrose Road, Bangalore besides extension of charge over the current assets;

B. First Charge by way of Hypothecation of the entire current assets and receivables of the Company, both present and future, besides extension of charge over fixed assets;

C. Personal Guarantee by the Promoter Directors of the Company.

10. Income / Expenditure relating to earlier year(s), the accrual / liability whereof has crystallised during the year in the opinion of the management, have been credited / debited to Profit & Loss Account, alongwith write off of bad debts / misc. balances under the head "Previous Years Adjustments / Write-offs" with a net debit balance amounting to Rs. 60,440 (2003 - Rs. 97,367)

14. Segment Reporting:

The Company has only a single reportable segment, i.e. Manufacture of PET / Plastics Containers in terms of AS -17 issued by the Institute of Chartered Accountants of India.


Mar 31, 2002

1. All the figures have been rounded off to the nearest rupee.

2. The previous years figures have been regrouped/rearranged, wherever necessary, to facilitate comparison with the current years figures.

3. Parties balances in a few cases are subject to confirmation, reconciliation and final adjustments, if any.

4. Pursuant to the Sales Tax Exemption Certificate obtained by the Company from the Government of Karnataka (Department Of Industries and Commerce), the Company was eligible, in respect of its PET Containers Unit located at Bangalore, for 100% Sales Tax (KST and CST) Exemption, limited to Rs. 62,111,239, on sales of finished goods for a period of 5 (five) years w. e. f. 28th March 1996, being the date of commencement of commercial production by the unit. Further, in respect of ex- pansion of capacity from 600 MT to 1200 MT commissioned on 3rd March, 1999, the company has been granted additional Sales Tax Exemption (KST & CST), limited to Rs. 474.77 Lacs, for a period of 5 years w. e. f. 3rd March 1999 by the appropriate authority of the Government of Karnataka. The company has assessed/provided for liability in respect of sales tax during the FY 2001-02 under the relevant provisions after expiry of exemption period under the original scheme, based on its own assessment, and additional/incremental liability, if any, due on final assessment will be provided for in due course.

5. The Company has provided for its estimated liability in respect of Bonus and Gratuity payable to employees on accrual basis during the current year as per the usual practice adopted by the Company in previous year.

6. (a) Amount of outstanding dues to SSI units as on 31st March 2002 - Rs. 1,832,493 (2001 - Rs. 1,340,189).

(b) Dues to SSI Units for an amount exceeding Rs. 1 Lac for more than 30 days as on 31st March, 2002: i) Bharat Printing & Packaging; ii) Inteco Colloids Pvt. Ltd.; iii) Maruthi Metals & Plastics Pvt. Ltd.; iv) Monolax Industries; v) Stripwell Rotopacks; vi) Vishal Polymers.

7. Capital Commitment outstanding (Net of advances) - Nil (2001 - Nil).

8. Contingent Liabiiities not provided for:

(a) Bank Guarantee Outstanding - Rs. 1,218,000 (2001 - Rs. 615,000) (Margin Deposits with the Bank against the same - Rs. 243,600 (2001 - Rs. 123,000).

(b) Estimated Liability towards Customs Duty on Raw Materials in Bond not provided for - Rs. 285,597 (2001 - Rs. 285,597).

(c) Disputed Penalty Demands raised by the Commercial Tax Department, Government of Karnataka, under Karnataka Tax on Entry of Goods (KTEG) Act, 1979 in respect of assessment years 1995-96, 1996-97 and 1997-98 amounting to Rs. 210,000, against which a sum of Rs. 105,000 has been deposited during the year by the company with the Asstt. Commissioner of Commercial Taxes, pending adjudication of the appeal, and shown under the head Loans & Advances.

9. Securities offered by the Company against Secured Loans:

(a) For Term Loan:

The Outstanding Term Loan (2) of Rs. 275 Lacs availed by the company from State Bank of India for expansion of the PET Containers unit at Bangalore is secured by way of first charge on the entire immovable and movable properties of the Company, both present and future, and extension of charge over the current assets of the Company, besides being guaranteed by the Promoter Directors of the Company in personal capacity.

(b) For Cash Credit Limit:

The sanctioned Limit of Rs. 174 Lacs for the PET Containers Unit being availed by the Company from State Bank of India is secured by way of first charge on the entire Current Assets and extension of charge over the Fixed Assets of the Company, both present and future, and also guaranteed by the Promoters Directors of the Company in personal capacity.

10. Income/Expenditure relating to earlier year(s), the accrual/liability whereof has crystallised during the year in the opinion of the management, have been credited/debited to Profit & Loss Account for the current year under the head "Previous Years Adjustments/ Write-offs" as detailed hereunder:

(Amount in Rs.)

A. income Transport Subsidy 140,050

Total (A) 140,050

B. Expenditure Provident Fund 52

Service Tax 209,964 Entry Tax 1,384

Bad Debts Written Off 1,378,673

Total (B) 1,590,073

Net Amount Debited to Profit & Loss Account (A-B) 1,450,023

11. Particulars of Directors Remuneration:

Items 31.03.2002 (Rs.) 31.03.2001 (Rs.)

Remuneration to Managing Director 198,000 186,000

Remuneration to Executive Director 174,000 162,000

Monetary Value of Perquisites 73,573 138,162

Total 445,573 486,162

The aforesaid remuneration/perks have been allowed pursuant to the provisions of the Sections 269, 198(4), and 309(3) of Companies Act, 1956 read with Schedule XIll of the Act by way of minimum remuneration to the Managing Director/Executive Director in accordance with the Special Resolutions passed by the Members of the Company in the Annual General Meeting held on 30th Day of September, 1999.

12. Particulars of Payments made to the Auditors:

Items 31.03.2002 (Rs.) 31.03.2001 (Rs.)

Statutory Audit Fees 62,370 62,370

Tax Audit Fees 20,790 20,790

For Other Services 35,025 32,275

Total 118,185 115,435

13. Additional Information Pursuant to the Provisions of Part II of Schedule VI to the Companies Act, 1956 (as amended):

(i) Particulars of Licensed and Installed Capacity:

Class of Goods Manufactured Licensed Capacity Installed Capacity*

2002 2001 2002 2001

Polyethylene Terepthalate (PET) Not Not 1200 MT 1200 MT

Stretch Blow Moulded Containers Specified Specified

(*) Based on Triple Shift Operation assuming 300 working days a year as certified by the Management, which has been relied upon by the Auditors, being a technical matter.

Note: The manufacturing of Polyester Polylaminated pouches, HM/HOPE Plain/Printed Bags/Sleeves etc. at Guwahati Unit has been discontinued with effect from 1st Oct. 2000, hence not disclosed in the above chart.

(ii) Particular of Production, Sales & Stocks:

Items 31.03.2002 31.03.2001 Qty. (MT) Value (Rs.) Qty. (MT) Value (Rs.)

Polyester Poly - laminated Pouches, HM/HDPE Plain/ Printed Bags/Sleeves etc.

- Production N. A.* N. A.* 206.444

- Turnover 225.887 21,830.157

- Closing Stock Nil Nil

Polyethylene Terepthalate (PET) Stretch Blow Moulded Containers.

- Production 1115.437 - 1186.547 -

- Turnover 1096.065 191,018.817 1169.714 208,807.816

- Closing Stock 102.150 7,712.354 82.77 6,456.640

(*) Manufacturing discontinued w. e. f. 1st October, 2000.

(iii) Particulars of Raw Materials Consumed:

Items 31.03.2002 31.03.2001 Qty.(MT) Value (Rs) Qty. (MT) Value (Rs.)

Granules - - 183.631 7,968,991

PET Chips 1122.931 56,977,782 1194.022 63,136,016

Cap Plastic Material 414.964 15,167,518 311.908 15,164,666

Filrps - - 33.641 2,869,315

Inks/Reducers L. S. 14,803,725

Others L. S. 14,993,385 L. S. 10,303,823

Total 87,138,685 101,246,536

(iv) Break-up of Raw Materials consumed:

Items 31.03.2002 31.03.2001 (%) Value (Rs.) (%) Value (Rs.)

Imported 3.66 3,191,437 Nil Nil

Indigenous 96.34 83,947,248 100.00 101,246,536

Total 100.00 87,138,685 100.00 101,246,536

(v) Value of Imports (CIF Value):

Items 31.03.2002 31.03.2001

Raw Materials 2,522,414 Nil

Capital Equipment 2,109,980 52,607

(vi) Expenditure in Foreign Currency:

Items 31.03.2002(Rs.) 31.03.2001 (Rs.)

Travelling Expenses 1,395,392 400,102

Bank Interest/Charges 308,992 17,157

Sales Promotion Expenses Nil 1,037,421

Other Expenses Nil Nil

(vii) Earning in Foreign Exchange:

Items 31.03.2002 (Rs.) 31.03.2001 (Rs.)

Export sales (including exchange difference) 5,437,685 2,482,518

Others Nil Nil


Mar 31, 2000

1. All the figures have been rounded off to the nearest rupee.

2. The previous year's figures have been regrouped/rearranged, wherever necessary, to facilitate comparison with the current year's figures.

3. Parties' balances in a few cases are subject to confirmation, reconciliation and final adjustments, if any.

4. Pursuant to the Eligibility Certificate obtained by the Company under Industrial Policy 1986 & 1991 of the Government of Assam, and in view of the Sales Tax Exemption Scheme thereunder, no provision for local sales tax has been made by the Company in its books of account, as in earlier years, in respect of the Flexible Packaging Unit at Guwahati, as the same has not been collected against the sales effected by the Company. In this connection, the Company has obtained Stay Order from the Hon'ble Guwahati High Court restraining the Sales Tax Department of the Govt. of Assam from realisation of Sales Tax Demand, if any, during the period of eligibility, and the matter is presently sub-judice.

5. Pursuant to the Sales Tax Exemption Certificate obtained by the Company from the Government of Karnataka (Department Of Industries and Commerce), the Company is eligible, in respect of its PET Containers Unit located at Bangalore, foe 100% Sales Tax (KST and CST) Exemption, limited to Rs.62,111,239, on sales of finished goods for a period of 5 (five) years w.e.f. 28th March 1996, being the date of commencement of commercial production by the unit.

6. The Company has provided for its estimated liability in respect of Bonus to employees for the year amounting to Rs. 481,194 (1999-Rs. 276,254) and Gratuity amounting to Rs. 103,133 (1999 - Rs.105,484) on accrual basis during the current year as per the usual practice adopted by the Company in previous year.

7. Capital Commitment outstanding (Net of advances) - Rs.367,829 (1999 - Rs.62,000).

8. Contingent Liabilities not provided for :

(a) Letters of Credit outstanding - Rs.Nil (1999-Rs.794,760) (Margin Deposits with the Bank against the same - Rs.Nil (1999 - Nil).

(b) Bank Guarantee Outstanding - Rs.615,000 (1999-Nil) (Margin Deposits with the Bank against the same - Rs.123,000 (1999-Nil).

(c) Disputed Power Charges of Rs.238,195 (net of payments) (1998 - Rs.238,195) demanded by Assam State Electricity Board, the matter being sub-judice.

(d) Estimated Liability towards Customs Duty on Raw Materials in Bond not provided for Rs.285,597 (1999 - Rs.285,597).

(e) Pursuant to the decision of the Hon'ble Karnataka High Court, the Commercial Tax Department, Government of Karnataka, vide assessment orders dated 01.12.1999 and 14.01.2000, has raised an overall demand of Entry Tax amounting to Rs.1,913,793 against the Company (net of payments already made in respect of assessment year 1997-98 and shown in the Company's books of account in such year) under Karnataka Tax on Entry of Goods (KTEG) Act, 1979 in respect of assessment years 1995-96,1996-97 and 1997-98. The Company, having disputed its liability under the KTEG Act, 1979 during the pendency of petition before the Hon'ble High Court, has now admitted a liability of Rs.1,570,360 in course of appeal against the assessments before the appropriate appellate authority vide its submissions dated 16th June, 2000, and the decision of the appellate authority on the same is still awaited. However, the entire admitted liability of Rs.1,570,360 is being provided for in these accounts under the head "Previous Years' Adjustments", leaving a contingent liability of Rs.343,433 pending disposal of the Company's appeals in the matter.

(f) The Commercial Tax Department, Government of Karnataka, vide orders dated 03.01.2000 and 28.01.2000 has also raised Penalty demands aggregating to Rs. 875,000 against the Company under KTEG Act, 1979 in respect of assessment years 1995-96, 1996-97 and 1997-98, which have been fully contested by the company before the appropriate appellate authority, and hence are not provided for in the books of account pending disposal of Company's appeals.

9. Securities offered by the Company against Secured Loans :

(a) For Term Loans :

The sanctioned Term Loans of Rs.575 lacs for the PET Containers unit at Bangalore, availed by the Company at State Bank of India, West Guwahati Branch, have been secured by way of first charge on the entire immovable and movable properties of the Company, at Guwahati and Bangalore units, both present and future, and extension of charge over the current assets of the Company, besides being guaranteed by the Promoter Directors of the Company in personal capacity.

(b) For Cash Credit Limits :

The sanctioned limit of Rs.100 lacs for the Flexible Packaging unit being availed by the Company at State Bank of India, West Guwahati Branch, Guwahati and the limit of Rs.174 lacs for the PET Containers Unit being availed by the Company at State Bank of India, St. Marks Road Branch, Bangalore, are secured by way of first charge on the entire Current Assets and extension of charge over the Fixed Assets of the Company at its Guwahati and Bangalore Units, both present and future, and also guaranteed by the Promoters Directors of the Company in personal capacity.

10. (a) Amount of outstanding dues to SSI units as on 31st March, 2000 - Rs.2,374,365. (b) Dues to SSI Units for an amount exceeding Rs. 1 Lac for more than 30 days as on 31st March, 2000 : i) Brahmara Polymers (P) Ltd.; ii) Maruthi Metals & Plastics (P) Ltd.; iii) Prem Packing Industries; iv) Saptahgiri Packing Industries; v) Vishal Polymers.

11. Income/Expenditure relating to earlier year(s), the accrual/liability whereof has crystallised during the year in the opinion of the management, have been credited/debited to Profit & Loss Account for the current year under the head "Previous Years' Adjustments" as detailed hereunder :

Income Power Subsidy relating to earlier years Rs. 513,270

Transport Subsidy relating to earlier years Rs. 84,814

Expenditure Power Charges for earlier years Rs. 48,340

Entry Tax relating to earlier years Rs.1,570,360 (Ref : Note 8(e) above)

Net Amount debited to Profit & Loss Account Rs.1,020,616

12. Particulars of Payments made to the Auditors :

Items 31.03.2000 (Rs.) 31.03.1999 (Rs.)

Statutory Audit Fees 56,700 49,500

Tax Audit Fees 18,900 16,500

For Service Tax/Other Services 41,450 29,000

Total 1,17,050 95,000