Notes to Accounts of Plastiblends India Ltd.

Mar 31, 2018

Note 1: Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements are included in the following notes:

a) Useful Lives of Property, Plant & Equipment:

The Company uses its technical expertise along with historical and industry trends for determining the economic life of an asset/component of an asset. The useful lives are reviewed by management periodically and revised, if appropriate. In case of a revision, the unamortised depreciable amount is charged over the remaining useful life of the assets.

b) Defined Benefit Plans and Compensated Absences:

The cost of the defined benefit plans, compensated absences and the present value of the defined benefit obligation are based on actuarial valuation using the projected unit credit method. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, attrition rate, future salary increases and mortality rates.

Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

c) Expected Credit Losses on Financial Assets:

The impairment provisions of financial assets are based on assumptions about risk of default and expected timing of collection. The Company uses judgment in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, customer''s creditworthiness, existing market conditions as well as forward looking estimates at the end of each reporting period.

Terms/Right attached to Equity Shares :

The Company has only one class of equity shares having a par value of Rs. 5 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders at the ensuing Annual General Meeting.

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.

The Company''s pending litigations comprise of proceedings pending with Income Tax authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

b. Letter of Credit & Bills of Exchange as at 31^st March, 2018 is Rs.850.77 Lacs (31^st March, 2017 Rs.39.68 Lacs, 1^st April, 2016 Rs.39.53 Lacs)

c. Guarantees issued by the Banks on behalf of the Company as at 31^st March, 2018 is Rs.166.18 Lacs (31^st March, 2017 Rs.167.33 Lacs, 1^st April, 2016 Rs. 160.47 )

d. The Company did not have any long-term contracts for which there were any material foreseeable losses.

Note 2: Employee Benefits (Ind AS 19): a. Defined Benefit Plans: Gratuity:

In accordance with the Payment of Gratuity Act, 1972, applicable for Indian companies, the Company provides for a lump sum payment to eligible employees, at retirement or termination of employment based on the last drawn salary and years of employment with the Company. The gratuity fund is managed by certain third-party fund managers. The Company''s obligation in respect of the gratuity plan, which is a defined benefit plan, is provided for based on actuarial valuation using the projected unit credit method. The Company recognizes actuarial gains and losses immediately in other comprehensive income, net of taxes.

Inherent Risk:

The plan is defined in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, this exposes the Company to actuarial risk such as Salary Risk, Interest Rate Risk, Investment Risk, changes in demographic experience. This may result in an increase in cost of providing these benefits to the employees in future. Since the benefits are lump sum in nature, the plan is not subject to any longevity risk.

*These Sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Basis of Estimation of Assumption:

The expected return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligations.

The discount rate is based on the prevailing market yields of Indian government securities for the estimated term of the obligations. The estimates of future salary increase considered takes into account the inflation, seniority, promotion and other relevant factors.

Attrition rate considered is the management''s estimate, based on previous years'' employee turnover of the Company.

Asset and Liability matching strategy:

The money contributed by the Company to the Gratuity Fund to finance the liability of the plan has to be invested. The Company has invested the plan assets in the insurer managed funds. The expected rate of return on plan assets is based on expectation of the average long-term rate of return expected on investments of the fund during the estimated term of the obligation.

There is no compulsion on the part of the Company to fully prefund the liability of the Plan. The Company''s philosophy is to fund these benefits based on its own liquidity.

b. Defined Contribution Plans:

Amount recognized as an expense and included in Note 30 under the head “Contribution to Provident and other Funds” of Statement of Profit & Loss Rs.166.68 Lacs (31^st March, 2017 Rs.169.50 Lacs)

c. Superannuation Benefits :

Superannuation Benefits is contributed by the Company to Life Insurance Corporation of India (LIC) with respect to certain employees.

Contribution to Superannuation Fund charged to Statement of Profit & Loss in Notes 30 under the head “Contribution to Provident and other Funds” is Rs.15.76 Lacs . (31^st March, 2017 Rs.16.89 Lacs)

Note 36: Segment Reporting (Ind AS 108)

The Company is exclusively engaged in the manufacturing of Masterbatches in India. As per Ind AS -108, “Operating Segments” specified under Section 133 of the Companies Act 2013, there are no reportable operating or geographical segments applicable to the Company.

Note 3 : Investments in equity instruments designated at Fair Value through Other Comprehensive Income

The Company has investments in Equity Shares of Kabra Extrusiontechnik Limited and units of Urban Infra Opportunity Fund. The Company has opted to designate the investment in Kabra Extrusiontechnik Limited at Fair Value through Other Comprehensive Income since these investments are not held for trading purpose. Investment in units of Urban Infra Opportunity Fund is being classified under Fair Value through Profit and Loss.

Dividend from Kabra Extrusiontechnik Limited (Refer Note 27) :- (For the year ended 31^st March, 2018 :- Rs.16.55 Lacs ; For the year ended 31^st March, 2017 :- Nil ;)

Note 4: Fair Value Measurement (Ind AS 113)

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 Company has established the following fair value hierarchy that categorizes the values into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are:

Level 1: This hierarchy uses quoted (unadjusted) prices in active markets for identical assets or liabilities. The fair value of all bonds which are traded in the stock exchanges is valued using the closing price or dealer quotations as at the reporting date. Kabra Extrusiontechnik Limited is listed on stock exchange and the investment by the Company is being valued using the closing exchange price at the reporting date.

Level 2: The fair value of financial instruments that are not traded in an active market (For example traded bonds, over the counter derivatives) is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on company specific estimates. The Venture Capital Fund (Urban Infrastructure Fund) are valued using the closing Net Asset Value. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Note 5: Financial Risk Management Objectives and Policies (Ind AS 107)

The Company''s principal financial liabilities comprise borrowings and other payables. The main purpose of these financial liabilities is to finance and support the Company''s operations. The Company''s principal financial assets include Investments, Loans and Other receivables, Cash and Cash Equivalents, Other Bank Balances.

The Company is exposed to Market Risk, Credit Risk and Liquidity Risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures 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 the Company''s policies and risk objectives.

Financial Risk Management

The Company has exposure to the following risks arising from financial instruments:

a. Market Risk

b. Currency Risk

c.Credit Risk

d. Liquidity Risk

e. Market Risk

Market risk arises from the Company''s use of interest bearing financial instruments. It is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or other market factors. Financial instruments affected by market risk include borrowings.

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 management is responsible for the monitoring of the Company''s interest rate position. Different variables are considered by the management in structuring the Company''s borrowings to achieve a reasonable, competitive, cost of funding.

Interest rate sensitivity has been calculated assuming the borrowings outstanding at the reporting date have been outstanding for the entire reporting period. Further, the calculations for the unhedged floating rate borrowing have been done on the notional value of the foreign currency (excluding the revaluation).

b. Foreign Currency Risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the import of raw materials and spare parts, capital expenditure, exports of finished products.

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. The Company evaluates exchange rate exposure arising from foreign currency transactions. The Company follows established risk management policies and standard operating procedures. It uses derivative instruments like forwards to hedge exposure to foreign currency risk.

c. 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 is exposed to credit risk from its operating activities, investing and financing activities including security deposits with banks, investment in equity shares, venture capital fund investments, foreign exchange transactions etc.

Trade receivables:

Trade receivables are consisting of a large number of customers. The Company has credit evaluation policy for each customer and based on the evaluation credit limit of each customer is defined. Wherever the Company assesses the credit risk as high the exposure is backed by either bank guarantee / letter of credit or security deposits.

Total Trade receivable as on 31^st March,18 is Rs.12071.83 Lacs (31^st March,17 Rs.10993.90 Lacs, 01^st April, 2016 Rs.10492.95 Lacs).

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Other Financial Instrument and Cash Deposits

With respect to credit risk arising from the other financial assets of the Company, which comprise bank balances, cash, security deposits with respect to lease agreements, etc. the Company''s exposure to credit risk arises from default of the counter party, with a maximum exposure equal to the carrying amount of these assets.

Credit risk from balances with banks is managed with the Company''s policy. The Company limits its exposure to credit risk by only placing balances with local banks. Given the profile of its bankers, management does not expect any counter party to fail in meeting its obligations. With respect to other financial instruments, the Company assess the risk of recoverability on periodic basis and makes required provision whenever necessary.

d. Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company monitors its risk by considering the maturity of its financial assets (e.g. trade receivables, other financial assets) and projected cash flows from operations.

The cash flows, funding requirements and liquidity of the Company is monitored under the control of the management. The objective is to optimize the efficiency and effectiveness of the management of the Company''s capital resources. The Company manages liquidity risk by maintaining adequate reserves and borrowing facilities, by continuously monitoring forecasted and actual cash flows and matching the maturity profiles of financial assets and liabilities.

The Company currently has sufficient cash on demand to meet expected operational expenses.

Note 6: Capital Management (Ind AS 1)

For the purpose of Company''s capital management, capital includes issued capital and other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company''s Capital Management is to maximize shareholders value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirement of financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity.

b. With respect to office given on lease, operating lease income recognized in the Statement of Profit and Loss Account for the year ended 31^st March,18 amounting to Rs.395.57 Lacs (For the year ended 31^st March,17 Rs.235.53 Lacs)

c. General Description of Leasing Agreements:

- Nature of Leased Assets: Offices, Factory, Flats, Godowns.

- Future Lease Rentals are determined on the basis of agreed terms.

- At the expiry of lease terms, the Company has an option to return the assets or extend the terms by giving notice in writing.

- Lease agreements are generally cancelable and are renewable by mutual consent on mutually agreed terms.

Note 7: Corporate Social Responsibility:

Expenditure incurred in cash on Corporate Social Responsibility activities, included in different heads of expenses in the Statement of Profit and Loss is Rs.25.18 Lacs ( 31^st March,17 Rs.67.60 Lacs).

The amount required to be spent under Section 135 of the Companies Act, 2013 for the year ended 31^st March,18 is Rs.94.19 Lacs ( 31^st March,17 Rs.89.92 Lacs)

Note 8: Information as per the requirement of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006

The Company is in the process of inviting information from its vendors for their status under “The Small, Medium and Micro Enterprises Development Act 2006” , however in absence of any information, no disclosures have been made in this regards

Note 9: Research & Development:

Revenue expenditure on Research and Development included in different heads of expenses in the Statement of Profit and Loss is Rs.235.93 Lacs and Capital Expenditure in Fixed Assets is Rs.37.72 Lacs. ( 31^st March,17, in Statement of Profit & Loss:- Rs.187.60 Lacs and Capital Expenditure :- Rs.12.71 Lacs ).

Note 10:

In Mar 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) Amendment Rules, 2018, notifying Ind AS 115 ''Revenue from Contracts with Customers'', which replaces Ind AS 11 ''Construction Contracts'' and Ind AS 18 ''Revenue''. Except for the disclosure requirements, the new standards will not materially impact the Company''s financial statements. The amendment will come into force from 1^st April,18.

Note 11: First Time Adoption of Ind AS (Ind AS 101):

As stated in Note 1, these financial statements, for the year ended 31^st March,18, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31^st March,17, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (IGAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31^st March,2018, together with the comparative period data as at and for the year ended 31^st March,2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1^st April,2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its IGAAP financial statements, including the balance sheet as at 1^st April,2016 and the financial statements as at and for the year ended 31^st March,2017 and how the transition from IGAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows.

Exemptions Availed:

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has availed the following exemptions:

(a) Deemed cost for property, plant and equipment and intangible assets:

The Company has elected to continue with the carrying value of all of its plant and equipment and intangible assets as recognized as of 1^st April,2016 (transition date) measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

(b) Fair Value of Financial Assets and liabilities:

As per Ind AS exemption the Company has not fair valued the financial assets and liabilities retrospectively and has measured the same prospectively.

Notes to the Reconciliation of equity as at 1^st April,16 and 31^st March,17 and Total Comprehensive Income for the year ended 31^st March,17:

(a) Property, Plant and Equipment:

As per Ind AS 16, spare parts, stand- by equipment and servicing equipment are recognized as Property, Plant and Equipment (''PPE'') when they meet the following criteria:

-Are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and

-Are expected to be used during more than one period.

Based on the above provision, stores and spares satisfying above criteria are de-recognized from Inventory and capitalized as PPE from the date of purchase.

(b) Investments:

The Company has measured investments at Fair Value and has classified the same at Fair Value through Profit and Loss (FVTPL) and Fair value through Other Comprehensive Income (FVOCI). The resulting fair value changes of these investments have been recognized in retained earnings (net of related deferred taxes) as at the date of transition and subsequently in the Statement of Profit and Loss for the year ended 31^st March,17.

(c) Fair Valuation of Security Deposits:

Interest-free deposits have been fair valued and are discounted using an appropriate current market rate. The difference between the nominal value and the fair value of the deposit under the lease is considered as Prepaid Rent, which is unwinded on a straight line basis over the period of the lease. The company also recognizes interest expense using the discounting rate, over the life of the deposit. These adjustments are reflected in retained earnings as at the date of transition and subsequently in the statement of profit or loss.

(d) Allowances for Credit Losses:

For Provision of Credit Losses on Trade Receivables, the Company has adopted Simplified Approach where by provision of expected credit losses is made using a provision matrix to mitigate the risk of default payments.

(e) Revenue from Operations:

i) Under IGAAP, cash discounts and other discounts directly attributable to sales was recognized as part of other expenses which has been adjusted against the revenue under Ind AS during the year ended 31^st March,16.

(ii) Under IGAAP, revenue was presented net of excise duty. However, as per Schedule III to the Companies Act, 2013, revenue from operations is to be shown inclusive of excise duty. Accordingly, excise duty has been included in revenue from operations and shown separately as an expense.

(f) Other Expenses and Depreciation: Stores and Spares

With reference to Point (a), Stores and Spares consumption has been reversed from Profit & Loss which has been capitalized as PPE.

Depreciation on capitalized stores and spares till the date of transition has been accounted for in Retained Earnings and has been charged to Statement of Profit and Loss for the year ended 31^st March,16.

(g) Deferred Tax:

IGAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under IGAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred Tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or profit and loss respectively.

(h) Actuarial Gain/Loss:

Both under IGAAP and Ind AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis.

Under IGAAP, the entire cost, including actuarial gains and losses, are charged to Statement of Profit and Loss. Under Ind AS, remeasurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

(i) Reclassifications:

Reclassification and regrouping has been done basis the requirement of particular Ind As and Division II of Schedule III of the Companies Act, 2013 providing the framework for the preparation and presentation of Financial Statements in accordance with Ind ASs.

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Mar 31, 2017

1 INFORMATION ABOUT BUSINESS SEGMENTS

The Company is operating in one segment only i.e. Manufacturing of Masterbatches.

2 RELATED PARTY DISCLOSURES

(a) List of related parties and relationships :

A. Associate Concern.

Kabra Extrusiontechnik Ltd.

B. Enterprise over which Executive Directors exercise significant influence.

Kabra Gloucester Engineering Limited, Kolsite Corporation LLP, Kolsite Industries, Kolsite Packaging Systems Pvt. Ltd., Maharashtra Plastic & Industries, Maharastra Plastic Industries, Rambalab Ramnarayan, Shima Polymers, Smartech Global Solutions Ltd.,

C. Executive Directors, Directors, their Relatives.

Shri S V Kabra, Shri S N Kabra, Shri Anand S Kabra, Shri Varun S Kabra, Smt Veenadevi S Kabra, Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

3. AS REQUIRED BY REVISED ACCOUNTING STANDARD 4, THE COMPANY HAS NOT RECOGNISED DIVIDEND DECLARED AFTER THE BALANCE SHEET DATE.

4 PREVIOUS YEAR’S FIGURES HAVE BEEN REGROUPED/RECAST WHEREVER NECESSARY.

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Mar 31, 2016

Note 1 : Related Party Disclosures

(a) List of related parties and relationships:

A. Associate Concern

Kabra Extrusiontechnik Ltd.

B. Enterprises over which Executive Directors exercise significant influence.

Rambalab Ramnarayan, Maharastra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd., Kolsite Industries., Kolsite Corporation LLP, Kolsite Packaging Systems Pvt. Ltd., Kabra Gloucester Engineering Limited,Shima Polymers.

C. Executive Directors, Directors and their Relatives

Shri S V Kabra, Shri S N Kabra, Shri A S Kabra, Shri Varun S Kabra, Smt. Veenadevi S Kabra,

Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

Note 2 : Previous year''s figures have been regrouped/recast wherever necessary.

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Mar 31, 2015

Rs.in Lacs

NOTE 1 : Contingent Liabilities not provided for: 2015 2014

Bank Guarantees 208.73 45.80

Letter of Credit 449.66 136.37

Claim against the company not acknowledged as debts 26.00 26.00

Service Tax matter under dispute 470.63 417.60

NOTE 2 : Amount Due to Small, Medium and Micro enterprises:

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regards.

Note 3 : Related Party Disclosures

(a) List of related parties and relationships:

A. Associate Concern

Kabra Extrusion Technik Ltd.

B. Enterprise over which key management personnel exercise significant influence.

Rambalab Ramnarayan, Maharashtra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd., Kolsite Industries., Kolsite Corporation LLP, Kolsite Packaging Systems Pvt. Ltd., Kabra Gloucester Engineering Ltd., Shima Polymers

C. Key Management Personnel and Relatives, Chairman & Managing Director, Directors , Related to Directors

Shri S V Kabra, Shri S N Kabra, Shri A S Kabra, Shri Varun S Kabra, Smt. Veenadevi S Kabra,

Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

Notes :

(1) This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the meeting.

(2) For the Resolutions, Explanatory Statement and Notes, please refer to the Notice of the 24th Annual General Meeting

(3) It is optional to put a 'X' in the appropriate column against the Resolutions indicated in the Box. If you leave the 'For' and

'Against' column blank against any or all Resolutions, your proxy will be entitled to vote in the manner as he / she thinks appropriate.

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Mar 31, 2014

1 Contingent Liabilities not provided for

Bank Guarantees 45.80 91.60

Letter of Credit 136.37 253.49

Less- Fixed deposits shown under the head cash and - 6.00 bank balance include deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks Net amount 182.17 339.09

Disputed income tax demand - 6.10

Claim against the company not acknowledge as debts 26.00 -

Service tax matter under dispute 417.60 415.19

2 Amount Due to Small, Medium and Micro Enterprises

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regards.

3 Information about Business Segments

The company is operating in only one segment only i.e. Manufacturing of Materbatches.

4 Related Party Disclosures

(a) List of related parties and relationships:

Relation Parties

A. Associate Concern Kabra Extrusiontechnik Ltd.

B. Enterprise over which key management personnel Kolsite Industries., Kolsite Corporation LLP, exercise significant influence. Kolsite Packaging Systems Pvt. Ltd., Kabra

Gloucester Engineering Limited, Maharashtra Plastic Industries, Maharashtra Plastic & Industries, Rambalab Ramnarayan, Smartech Global Solutions Ltd.

C. Key Management Personnel and Relatives, Chairman & Shri S V Kabra, Shri S N Kabra, Shri A S Kabra, Managing Director, Directors , Related to Directors Shri Varun S Kabra, Smt. Veenadevi S Kabra,

Smt Saritadevi S Kabra, Smt Ekta A Kabra, Miss Khushi A Kabra

5 Disclosure for operating leases:

The Company has taken on lease factory at Daman, Mumbai office & residential flats for employees under operating leases. The lease payments to be made in respect of non cancellable lease in future are as follows:

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Mar 31, 2013

1 Contingent Liabilities not provided for

Bank Guarantees 91.60 106.80

Letter of Credit 253.49 425.87

Less : Fixed deposits shown under the head cash and cash 6.00 66.22 equivalents include deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks

Net amount 339.09 466.45

Disputed income tax demand 6.10 24.95

Service tax matter under dispute 415.19 402.97

2 Information about Business Segments

The company is operating in only one segment i.e. manufacturing of materbatches.

3 Disclosure for operating leases:

The Company has taken on lease factory at Daman, Mumbai office & residential flats for employees under operating leases. The lease payments to be made in respect of non cancellable lease in future are as follows:

4 Previous year''s figures have been regrouped/recast wherever necessary.

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Mar 31, 2012

1 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for is Rs.70.47 Lacs (Previous year Rs.45.61 Lacs)

(Rs.in Lacs)

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

2 Contingent Liabilities not provided for:

Bank Guarantees 106.80 77.56

Letter of Credit 425.88 658.50

Fixed deposits shown under the head cash and cash equivalents include 6.00 45.27 deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks

Net amount 526.68 690.79

Disputed income tax demand 24.95 24.95

Service tax matter under dispute 402.97 394.23

3 Amount Due to Small, Medium and Micro Enterprises:

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act, 2006", however in absence of any information, no disclosures have been made in this regards.

4 Disclosure in pursuance of Accounting Standard -15 (Revised) on "Employee Benefits"

a) Compensated Leave:

Privilege leave entitlements are recongnised as liability in the calender year of rendering of service as per rules of the Company. As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

b) Gratuity is administered through group gratuity scheme with Kotak Life Insurance under Kotak Gratuity Group Plan.

5 Information about Business Segments

The company is operating in only one segment i.e. manufacturing of masterbatches.

6 Related Party Disclosures

(a) List of related parties and relationships:

A. Associate Concern and Promoter Companies

Kabra Extrusiontechnik Ltd.

B. Enterprise over which key management personnel exercise significant influence.

Ganges Urethane LLP, Kabra Gloucester Engineering Ltd., Kolsite Industries, Kolsite Maschine Fabrik Pvt. Ltd., Kolsite Packaging Systems Pvt. Ltd., Maharshree Plastic Industries Pvt. Ltd., Maharastra Plastic Industries, Maharashtra Plastic & Industries, Rambalab Ramnaran, Smartech Global Solutions Ltd., Wonderworld Resorts Ltd.,

C. Key Management Personnel and Relatives

Shri S. V. Kabra-Chairman and Managing Director, Shri S. N. Kabra-Vice Chairman and Managing Director, Shri A. S. Kabra-Executive Director, Shri Varun S. Kabra, Smt Veenadevi S. Kabra, Smt Saritadevi S. Kabra, Smt Ekta A. Kabra, Miss Khushi A. Kabra

7 Previous year's figures have been regrouped/recast wherever necessary

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Mar 31, 2011

1. Capital Commitments:

Estimated Amount of contracts remaining to be executed on capital account & not provided for is Rs 45,60,675/- (Previous year Rs 1,35,27,571/-)

2. Contingent Liabilities not provided for:

Year Ended March 31 (Rs.)

Particulars 2011 2010

Bank guarantees 77,56,000 67,20,000

Letter of Credit 6,58,50,158 64,09,383

Fixed deposits shown under the head cash and bank balances include 45,26,967 55,03,406 deposits pledged with the banks as margins to secure letters of credit and guarantees issued by banks Net amount 6,90,79,191 76,25,977

Bills Discounting 13,36,27,920 7,26,49476

Uncalled Amount On Investments 1,15,20,000 1,15,20,000

Disputed income tax demand 24,95,000 24,95,000

Service Tax matter under dispute 3,94,22,628 3,11,31,665

3. Amount Due to Small, Medium and Micro enterprises:

Company is in process of inviting information from its vendors for their status under "The Small, Medium and Micro Enterprises Development Act 2006", however in absence of any information, no disclosures have been made in this regard.

4. Disclosure in pursuance of Accounting Standard - 15 (Revised 2005) on "Employee Benefits"

a) Compensated Leave:

Privilege leave entitlements are recognised as liability in the calendar year of rendering of service as per rules of the Company. As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

b) Gratuity is administered through group gratuity scheme with Kotak Life Insurance under Kotak Gratuity Group Plan.

5. Information about Business Segments

The company is operating in one segment only i.e. Masterbatches.

6. Related Party Disclosures

(A) List of related parties and relationships:

Relation Parties

A. Associate Concern & Promoter Companies Kabra Extrusiontechnik Ltd.

B. Enterprise over which key management personnel exercise significant influence.

Rambalab Ramnaran, Kabra Gloucester Engineering Ltd.,

Kolsite Machine Fabrik Pvt. Ltd.,

Mahashree Plastic Industries Pvt. Ltd.,

Maharashtra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd.,

Kolsite Industries, Wonderworld Resorts Ltd.,

Ganges Urethane Pvt. Ltd.

C. Key Management Personnel and Relatives Chairman & Managing Director Related to Directors

Shri S V Kabra, Shri S N Kabra, Shri A S Kabra

Smt Veenadevi S Kabra, Smt Saritadevi S Kabra, Smt Ekta

A Kabra, Shri Varun S Kabra

7. Previous year's figures have been regrouped/recast wherever necessary.

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Mar 31, 2010

Current Year (Rs.) Previous Year (Rs.)

1.a)Contingent Liabilities not provided for in respect of i) Guarantee issued 67,20,000 67,20,000

ii) Letter of Credit 64,09,383 14,53,006

iii) Bills Discounting 7,28,49,476 2,08,39,858

iv) CST matters -- 1,07,546

v) Service Tax matters 3,11,31,665 --

11,69,10,524 2,91,20,410

2) In the absence of intimation from the vendors with regard to their registration (Filing of Memorandum) under "The Micro, Small & Medium Enterprise Development Act, 2006 (27 of 2006)" and in view of the terms of payments not exceeding 45 days no liability exists at the close of the year and hence no disclosure have been made in this regard.

3) The Company has provided for Excise Duty Liability on finished goods amounting to Rs. 1,29,66,478/- ( P.Y. Rs 72,75,328/-). However this does not have any impact on the profit for the year.

4) As accumulated leave can be availed and / or encashed at any time during the tenure of employment, the liability is recognised at the higher of the actual accumulated obligation or actuarially determined value.

5) Amount of borrowing cost capitalised as per AS -16 during the year was Rs. Nil ( P. Y. Rs. NIL)

6) The company is operating only in one segment hence no segment wise disclosure as per AS -17 is provided.

7) As required by AS -18 "Related Party Disclosure" are given below.

A) Names of Related Parties & Description of relationship with whom there were "NO TRANSACTIONS" during the year.

i) ASSOCIATE CONCERNS :

Kabra Gloucester Engineering Ltd.,

ii) CONCERNS IN WHICH DIRECTORS ARE INTERESTED :

Rambalab Ramnaran, All Purpose Consultations & Services Pvt. Ltd., See Diff. Software Solutions (India) Pvt. Ltd., Harekrishna Harerama Trading Company Pvt. Ltd., Welworth Investments & Trading Company Pvt. Ltd., Elegant Trading & Investment Company Pvt. Ltd., Ideal Consultancy Services Pvt. Ltd., Borouge (India) Pvt. Ltd., Innovations Consultancy India Pvt. Ltd., Panoramic Investment Advisors Pvt. Ltd.

B) Names of Related Parties & Description of relationship with whom there were "TRANSACTIONS" during the year.

i) ASSOCIATE CONCERNS : Kolsite Maschine Fabrik Pvt. Ltd., Kabra Extrusiontechnik Ltd., Mahashree Plastic Industries Pvt. Ltd., Maharastra Plastic Industries, Maharashtra Plastic & Industries, Smartech Global Solutions Ltd., Kolsite Industries, Wonderworld Resorts Limited

ii) DIRECTORS : Shri S. V. Kabra, Shri S. N. Kabra, Shri H. S. Sanwal, Shri A.S. Kabra. Shri P. R. Singhvi, Dr. Y. B.Vasudeo, Shri S.K. Parab.