Home  »  Company  »  Polyplex Corpn.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Polyplex Corporation Ltd.

Mar 31, 2016

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of '' 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of equity shares held by the Equity Shareholders.

ii. Bills discounted with banks Rs. 422.12 Lacs (Previous Year: '' Nil).

iii. Custom duty saved amounting to '' Rs. 706.23 Lacs (Previous Year: '' Rs. 2,639.24 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others Rs.678.61 Lacs (Previous Year: Rs.790.88 Lacs), including Rs.Nil (Previous Year: Rs.2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs.1,727.65 Lacs (Previous Year:Rs.1,625.71 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs.441.39 Lacs (Previous Year: Rs.256.28 Lacs) and capital expenditure of Rs.Nil (Previous Year: Rs.0.79 Lacs) on Research & Development are charged to the respective heads of account.

T. Remuneration paid / provided to Mr. Pranay Kothari, Whole Time Director for FY 2015-16 amounting to Rs.314.50 Lacs (including contribution to Superannuation fund and Provident fund) and does not include payment of Rs.1.97 Lacs and Rs.0.66 Lacs paid towards leave encashment and medical reimbursements as per the policy of company, in terms of the approval of the shareholders as per Special Resolution passed by the members on September 28,2015, exceeds the ceiling on Managerial Remuneration as per Section 197, read with Companies (Appointment & Remuneration of Managerial Personnel) Rules of the Companies Act, 2013 by Rs.172.89 Lacs, for which application for approval is pending with Ministry of Corporate Affairs, Government of India.

U. Debtors over six months include overdue debtors aggregating to Rs.31.95 Lacs (Previous Year: Rs.31.95 Lacs) (net of provision of Rs.Nil (Previous Year: Rs.Nil)) where Company has initiated legal or other necessary action for recovery.

V. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs.24.37 Lacs (Previous Year:Rs.Nil)

(ii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the management.

W. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS - 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

X. Previous Year''s figures have been re-grouped/re-classified accordingly.

Y. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs.Lacs with two decimals.


Mar 31, 2015

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs. 21.28 Lacs (Previous Year - Rs. 195.24 Lacs)) - Rs. 130.36 Lacs. (Previous Year - Rs. 1,777.82 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:



i. Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 103.36 113.15

Excise Duty & Customs Duty 29.14 29.14

Income Tax 382.46 232.67

Others 25.36 32.84

ii. Bills discounted with banks - Nil (Previous Year - Rs. Nil).

iii. Custom duty saved amounting to Rs. 2,639.24 Lacs (Previous Year - Rs. 1,513.89 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others - Rs. 790.88 Lacs (Previous Year - Rs. 154.17 Lacs), including Rs. 2.00 Lacs (Previous Year - Rs. 2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs. 1,625.71 Lacs (Previous Year - Rs. 2,142.88 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs. 256.28 Lacs (Previous Year - Rs. 243.65 Lacs) and capital expenditure of Rs. 0.79 Lacs (Previous Year - Rs. 0.03 Lacs) on Research & Development are charged to the respective heads of account.

ii. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and / or reconciliation.

E. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

F. As per Accounting Standard – 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

G. Related Party Disclosures (as identified by Management)

H. Parties where control exists :

Subsidiary / Step down Subsidiaries :

a. Polyplex (Thailand) Public Co Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S. (PE)

e. Polyplex USA LLC (PU)

f. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

g. PAR LLC USA (PAR LLC)

h. Polyplex America Holdings Inc (PAH)

i. Polyplex Resins Sanayi Ve Ticaret A.S. (PR) upto March 02, 2015

j. EcoBlue Ltd. (EL)

k. Peninsula Beverages & Food Company Pvt Ltd. (PBF)

l. Polyplex Europa B. V. (PEBV)

m. Polyplex Paketleme Çozumleri Sanayi Ve Ticaret A.S. (PPC)

ii. Other related parties with whom transactions have taken place during the year :

Key Management Personnel (KMP) :

a. Mr. Sanjiv Saraf (Chairman)

b. Mr. Pranay Kothari (Executive Director)

c. Mr. Ashok Kumar Gurnani (Company Secretary)*

d. Mr. Manish Gupta (Chief Financial Officer)*

Relative of Key Management Personnel

a. Ms. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

a. Beehive Systems Private Limited

b. Manupatra Information Solutions Private Limited

c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Kotla Hydro Power Private Limited

h. Punjab Hydro Power Private Limited

i. Abohar Power Generation Private Limited

j. Kanchanjunga Power Company Private Limited

k. Uttarakhand Hydro Power Private Limited

l. Utkarsh Trading and Holdings Limited*

m. Suresh Surana & Associates LLP*

n. RSM Astute Consulting Private Limited*

w.e.f. April 1, 2014 in accordance with Companies Act, 2013.

I. Remuneration paid / provided to Mr. Pranay Kothari, Whole Time Director for FY 2014-15 amounting to Rs. 207.60 Lacs (including contribution to Superannuation fund and Provident Fund) as per Special Resolution passed by the members on September 30, 2013, exceeds the ceiling on Managerial Remuneration as per Section 197, read with Companies (Appointment & Remuneration of Managerial Personnel) Rules of the Companies Act, 2013, for which application for waiver from Ministry of Corporate Affairs, Government of India is in process.

J. Debtors over six months include overdue debtors aggregating to Rs. 31.95 Lacs (Previous Year – Rs. 31.95 Lacs) (net of provision of Rs. Nil (Previous Year – Nil)) where Company has initiated legal or other necessary action for recovery.

K. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs. Nil (Previous Year – Rs. 35.62 Lacs)

ii) On reassessment of deferred tax, liability written back amounting to Rs. Nil (Previous Year – Rs. 782.74 Lacs)

(iii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the management.

L. During the current year, the Company has computed the Depreciation based on useful life of the fixed assets as prescribed under Schedule II of the Companies Act 2013 and in case of certain assets useful life as assessed by independent technical evaluation carried out by external valuer. The company has decided to charge full amount of depreciation in respect of certain assets whose life have been expired (life as per the Schedule II) to Statement of Profit and Loss in line with option given in notification no. G.S.R. 627 (E) dated 29th August 2014 issued by Ministry of Corporate Affairs. Had there not been any change in the useful life of the Fixed Assets the Profit would have been higher by Rs. 979.87 Lacs for the year ended March 2015.

M. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

N. Previous Year's figures have been re-grouped/re- classified accordingly.

O. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs. Lacs with two decimals


Mar 31, 2014

NOTE : 1

OTHER EXPLANATORY NOTES

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs. 195.24 Lacs (Previous Year - Rs. 207.42 Lacs) - Rs. 1,777.82 Lacs (Previous Year - Rs. 592.38 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

i. Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 113.15 179.03

Excise Duty & Customs Duty 29.14 29.14

Income Tax 232.67 73.54

Others 32.84 30.05

ii. Bills discounted with banks - Nil (Previous Year - Rs. 142.69 Lacs).

iii. Custom duty saved amounting to Rs. 1,513.89 Lacs (Previous Year - Rs. 2,469.66 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others - Rs. 154.17 Lacs (Previous Year - Rs. 361.97 Lacs), including Rs. 2.00 Lacs (Previous Year - Rs. 2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs. 2,142.88 Lacs (Previous Year - Rs. 2,392.23 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs. 243.65 Lacs (Previous Year - Rs. 219.51 Lacs) and capital expenditure of Rs. 0.03 Lacs (Net) (Previous Year- Rs. 0.64 Lacs) on Research & Development are charged to the respective heads of account.

E. i. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

II. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and / or reconciliation.

F. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

H. (i) Disclosure pursuant to Clause 32 of Listing Agreement

(ii) Advances recoverable in cash or in kind under Loans & Advances (Note 26 G) include Nil (Previous Year – Rs. 5 Lacs) due from the Officer / Director. Maximum amount due during the Year Rs. 5.29 Lacs (Previous Year – Rs. 7.17 Lacs).

iii. The Company took certain option structure, forward and interest rate / currency swap contracts to cover the foreign exchange risk related with the import of Fixed Assets. During the year, Nil (Previous Year – loss (net) of Rs. 36.81 Lacs) on foreign exchange derivatives taken for payments to suppliers of imported capital goods and loss (net) of Rs. 103.78 Lacs (Previous Year – gain (net) of Rs. 0.56 Lacs) on mark to market on outstanding derivatives as on March 31, 2014 has been capitalized / shown as part of pre- operative expenses based on expert opinion, as the same is attributable to the Fixed Assets.

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

R. As per Accounting Standard – 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

S. Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related party Disclosures "are given below:

i. Parties where control exists :

Subsidiary / Step down Subsidiaries :

a. Polyplex (Thailand) Public Co. Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S.(PE)

e. Polyplex USA LLC (PU)

f. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

g. PAR LLC USA (PAR LLC) h. Polyplex America Holdings Inc (PAH)

i. Polyplex Resins Sanayi Ve Ticaret A.S. (PR)

j. EcoBlue Ltd. (EL)

k. Peninsula Beverages & Foods Company Pvt. Ltd. (PBF)

l. Polyplex Europa B. V. (PEBV) w.e.f April 17, 2013

m. Polyplex Paketleme Çozumleri Sanayi Ve Ticaret A.S. (PPC) w.e.f September 11, 2013

ii. Other related parties with whom transactions have taken place during the year :

Key Management Personnel (KMP) :

a. Mr. Sanjiv Saraf (Chairman)

b. Mr. Pranay Kothari (Executive Director) Relative of Key Management Personnel :

a. Ms. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence :

a. Beehive Systems Private Limited

b. Manupatra Information Solutions Private Limited

c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Kotla Hydro Power Private Limited

h. Punjab Hydro Power Private Limited

i. Abohar Power Generation Private Limited

j. Kanchanjunga Power Company Private Limited

T. In view of insufficiency / inadequacy of Profit for the Financial Year ended March 31, 2013, remuneration paid to Mr. Pranay Kothari, Whole Time Director amounting to Rs. 142.63 Lacs exceeded the ceiling on Managerial Remuneration as per Section 198, 269 read with Section 309 of the Companies Act, 1956, for which Company''s application is pending for approval of the Ministry of Corporate Affairs, Government of India.

Further, application for approval of remuneration payable to Mr. Pranay Kothari amounting to Rs. 208.24 Lacs as approved by the shareholders for the Financial Year 2013-14 is pending with the Ministry of Corporate Affairs, Government of India. Pending receipt of approval, remuneration of Rs. 122.24 Lacs, as permitted under Schedule XIII of Companies Act, 1956 have been paid / provided.

U. Debtors over six months include overdue debtors aggregating to Rs. 31.95 Lacs (Previous Year – Rs. 45 Lacs) (net of provision of Rs. Nil (Previous Year – Nil)) where Company has initiated legal or other necessary action for recovery.

V. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of

Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs. 35.62 Lacs (Previous Year – Rs. 39.32 Lacs)

(ii) On reassessment of deferred tax, liability written back amounting to Rs. 782.74 Lacs.

(iii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provision has been considered necessary by the management.

W. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

X. Previous Year''s figures have been re-grouped/re- classified accordingly.

Y. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs. Lacs with two decimals.


Mar 31, 2013

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs.207.42 Lacs (Previous Year - Rs.132.71 Lacs) - Rs.592.38 Lacs. (Previous Year - Rs.589.17 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

i. Disputed matters under litigation:

(Rs. in Lacs) Particulars Current previous Year Year

Sales Tax & Entry Tax 179.03 238.87

Excise Duty & Customs Duty 29.14 29.14

Income Tax 73.54 73.54 Others 30.05 18.75

ii. Bills discounted with banks - Rs.142.69 Lacs (Previous Year - Rs.871.86 Lacs).

iii. (a) Custom duty saved amounting to Rs.2,469.66 Lacs (Previous Year - Rs.2,765.16 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(b) Import duty saved amounting to Rs.128.47 Lacs (Previous Year - Rs.162.43 Lacs) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others - Rs.361.97 Lacs (Previous Year - Rs.428.97 Lacs), including Rs.2.00 Lacs (Previous Year - Rs.2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs.2,392.23 Lacs (Previous Year - Rs.1,284.59 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs.232.80 Lacs (Previous Year – Rs.344.06 Lacs) and capital expenditure of Rs.0.64 Lacs (Previous Year – Rs.3.39 Lacs) on Research & Development has been debited to the respective heads of account.

E. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

F. Advances recoverable in cash or in kind under Loans & Advances (Note 26 G) include Rs.5 Lacs (Previous Year – Nil) due from an officer / director. Maximum amount due during the Year Rs.7.17 Lacs (Previous Year – Nil).

G. i. During the Current Year, Company has sold its holding of 25,000 nos. common stock in Polyplex (Americas) Inc. (PA) (representing 9.88% shareholding) having book value of Rs.44.54 Lacs to its subsidiary company Polyplex (Thailand) Public Co. Limited (PTL), which has resulted in profit of Rs.116.13 Lacs and the same is shown as exceptional income. Further, during the year, PTL has acquired non controlling stake in ''PA'' which subsequently has been merged into Polyplex USA LLC (PU) w.e.f. January 31, 2013.

ii. During the Previous Year, Company had retrospectively changed its method of providing depreciation on fixed assets pertaining to its plant at Khatima (Except Line 1) and Bajpur from Straight Line Method (SLM) to Written Down Value (WDV) Method, at the rates prescribed in Schedule XIV to the Companies Act, 1956. Accordingly, during the Previous Year, the Company has recorded an additional depreciation of Rs.7,078.80 Lacs in respect of earlier years as an exceptional item.

H. The Company has entered into operating lease agreement for a premise. Lease is non- cancellable for a period of six years and renewable thereafter on mutually agreed terms.

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

J. As per Accounting Standard – 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

K. Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures "are given below:

i. Parties where control exists:

Subsidiary/Step down Subsidiaries

a. Polyplex (Thailand) Public Co. Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S.(PE)

e. Polyplex USA LLC (PU)

f. Polyplex (Americas) Inc (PA) merged

with PU on January 31, 2013.

g. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

h. PAR LLC USA (PAR LLC)

i. Polyplex America Holdings Inc. (PAH)

j. Polyplex Resins Sanayi Ve Ticaret A.S. (PR)

k. EcoBlue Ltd. w.e.f. October 1, 2012

l. Peninsula Beverages & Foods Company

Pvt. Ltd. w.e.f. February 6, 2013

ii. Other related parties with whom transactions have taken place during the year:

Key Management Personnel (KMP)

a. Shri Sanjiv Saraf (Chairman)

b. Shri Pranay Kothari (Executive Director)

c. Shri Ranjit Singh (Whole Time Director)

upto October 31, 2012.

Relative of Key Management Personnel

a. Smt. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

a. Beehive Systems Private Limited

b. Manupatra Information Solutions Private Limited

c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Peninsula Beverages & Foods Company

Pvt. Ltd. upto February 5, 2013

L. In view of insufficiency / inadequacy of profits for the current financial year ended March 31, 2013, remuneration paid to Whole Time Directors exceeded the limit prescribed under provisions of Section 198, 269 read with Section 309 of the Companies Act 1956. Accordingly, Remuneration paid to Shri Pranay Kothari and Shri Ranjit Singh, Whole Time Directors amounting to Rs.289.57 Lacs is subject to the approval of the members (by way of Special Resolution), in the ensuing General Meeting, which includes Rs.142.63 Lacs in respect of Shri Pranay Kothari, Whole Time Director for which application for approval of the Ministry of Corporate Affairs, Government of India will be made in due course.

M. Trade Receivables over six months include overdue debts aggregating to Rs.45 Lacs (Previous Year – Nil) (net of provision of Rs.Nil (Previous Year – Nil)) where Company has initiated legal or other necessary action for recovery.

N. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of

Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs.39.32 Lacs (Previous Year – Rs.344.85 Lacs)

(ii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provision has been considered necessary by the management.

O. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

P. Previous Year''s figures have been re-grouped/re- classified accordingly.

Q. Figures in the Balance Sheet, Profit & Loss Statement and Cash Flow Statement have been expressed in Rs. Lacs with two decimals.


Mar 31, 2012

NOTE 1 SHARE CAPITAL

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of Rs. 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of Equity Shares held by the Equity Shareholders.

NOTE : 2

OTHER EXPLANATORY NOTES

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs. 132.71 Lacs, Previous Year - Rs. 1,546.91 Lacs) - Rs. 589.17 Lacs. (Previous Year - Rs. 7,525.97 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

I. Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 238.87 352.07

Excise Duty & Customs Duty 29.14 22.95

Income Tax 73.54 73.54

Others 18.75 20.71

II. Bills discounted with banks - Rs. 871.86 Lacs (Previous Year - Rs. 338.52 Lacs).

III. (i) Custom Duty saved amounting to Rs. 2,765.16 Lacs (Previous Year - Rs. 4,613.85 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(ii) Import duty saved amounting to Rs. 162.43 Lacs (Previous Year - Nil) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.

IV. Guarantees given to the banks and others - Rs. 428.97 Lacs (Previous Year - Rs. 340.30 Lacs), including Rs. 2.25 Lacs (Previous Year - Rs. 2.25 Lacs) on behalf of other bodies corporate.

A. Export incentives amounting to Rs. 1,284.59 Lacs (Previous Year - Rs. 1,189.55 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumed Account.

B. The expenditure of Rs. 400.80 Lacs (Previous Year - Rs. 266.79 Lacs) on Research & Development has been debited to the respective heads of account.

C. I. As required by Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

(Rs. in Lacs)

Sl. Particulars 2011-12 2010-11 No.

(a) (i) Principal amount remaining unpaid at the end of the accounting year - -

(ii) Interest due on above - -

(b) The amount of interest paid by the buyer along with amount of payment made to the suppliers beyond the appointed date - -

(c) The amount of interest accrued and remaining unpaid at the end of financial year - -

(d) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the due date during the year) but without adding interest specified under this Act - -

(e) The amount of further interest due and payable in succeeding year, until such interest is actually paid - -

II. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and/or reconciliation.

D. Capital work in progress includes equipment not yet installed, construction/erection material, construction/erection work in progress, machinery at site and/or in transit, advance to suppliers and other pre-operative expenses pending allocation/capitalization. Pre-operative expenses pending allocation/capitalization are:

E. Advances recoverable in cash or in kind under Loans & Advances (Note 26 G) include Rs. Nil (Previous Year - Nil) due from the officer/director. Maximum amount due during the year Rs. Nil (Previous Year - Rs. 0.25 Lacs).

F. During the Current Year, the Company has retrospectively changed its method of providing depreciation on fixed assets pertaining to its plant at Khatima (Except Line 1) and Bajpur from Straight Line Method (SLM) to Written Down Value (WDV) Method, at the rates prescribed in Schedule XIV to the Companies Act, 1956. This change will result in more appropriate basis of charging depreciation.

This change represents time and pattern in which the economic benefit flows to the Company. Accordingly, the Company has recorded an additional depreciation amounting to Rs. 7,078.80 Lacs related to earlier years which has been disclosed as an exceptional item and Rs. 3,602.82 Lacs as a additional charge for current year. The Profit After Tax (PAT) for Current Year would have been higher by Rs. 5,807.04 Lacs had the Company continued the use of earlier method of depreciation.

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

Defined Contribution Plan

Contribution to Defined Contribution Plan recognised and charged off/debited to Statement of Profit & Loss/Pre-operative Expenses pending allocation are as under:

Defined Benefit Plan

Employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

H. As per Accounting Standard-17 on Segment reporting, segment information has been provided in Notes to Consolidated Financial Statements.

I. Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures" are given below:

J. Parties where control exists

Subsidiary/Step down Subsidiaries

- Polyplex (Thailand) Public Co. Limited

- Polyplex (Asia) Pte. Limited

- Polyplex (Singapore) Pte. Limited

- Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S.

- Polyplex (Americas) Inc.

- Polyplex Trading (Shenzhen) Co. Limited

- PAR LLC USA (PAR LLC) w.e.f. May 06, 2011

- Polyplex America Holdings Inc. (PAH) w.e.f. July 18, 2011

- Polyplex USA LLC (PU) w.e.f. July 18, 2011

- Polyplex Resins Sanyi Ve Ticaret A.S. (PR) w.e.f. December 02, 2011

II. Other Related Parties with whom transactions have taken place during the year

Key Management Personnel (KMP)

- Shri Sanjiv Saraf (Chairman)

- Shri Pranay Kothari (Executive Director)

- Shri Ranjit Singh (Whole Time Director)

Relative of Key Management Personnel

- Smt. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

- Beehive Systems Private Limited

- Manupatra Information Solutions Private Limited

- Altivolus Infotech Private Limited

- Dalhousie Villa Private Limited

- Bhilangana Hydro Power Limited

K. Debtors over six months include overdue overseas debtors aggregating to Rs. Nil (Previous Year - Rs. Nil) net of provision of Rs. Nil (Previous Year - Nil) where Company has initiated legal or other necessary action for recovery.

L. (I) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the Management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs. 344.85 Lacs.

(II) Income Tax assessment in respect of certain years is in process and for certain years some additions have been made. In respect of additions made/disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provision has been considered necessary by the Management.

M. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS - 28), the Management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

N. Current Year accounts have been prepared in accordance with the revised Schedule-VI of the Companies Act, 1956 and Previous Year's figures have been re-grouped/re-classified accordingly.

O. Figures in the Balance Sheet, Profit & Loss Statement and Cash Flow Statement have been expressed in Rs. in Lacs with two decimals.


Mar 31, 2011

1) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs.1,546.91 Lacs, Previous Year – Rs.670.01 Lacs) – Rs.7,525.97 Lacs. (Previous Year – Rs.3,069.40 Lacs).

2) Contingent Liabilities not provided for, in respect of:

a) Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 352.07 283.9

Excise Duty & Customs Duty 22.95 22.95

Income Tax 73.54 73.54

Others 20.71 41.21

b) Bills discounted with banks – Rs.338.52 Lacs (Previous Year – Rs.19.36 Lacs).

c) (i) Custom duty saved amounting to

Rs.4,613.85 Lacs (Previous Year – Rs.6,429.39 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(ii) Import duty saved amounting to Rs.Nil

(Previous Year – Rs.97.68 Lacs) in respect of goods imported under Advance License against which export obligation is pending to be fulfilled.

d) Guarantees given to the banks and others - Rs.340.30 Lacs (Previous Year – Rs.17.50 Lacs), including Rs.2.25 Lacs (Previous Year – Rs.17.50 Lacs) on behalf of other bodies corporate.

3) Import duty benefit under Duty Entitlement Pass

Book (DEPB) Scheme and profit/loss on sale of DEPB aggregating to Rs.1,189.55 Lacs (Previous Year – Rs.105.70 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumed Account.

4) The expenditure of Rs.266.79 Lacs (Previous Year – Rs.213.90 Lacs) on Research & Development has been debited to the respective heads of account.

5) The Company's investment in the preference share capital of its subsidiary viz. Polyplex (Asia) Pte. Limited was redeemed during Financial Year 2009- 10 as per terms of the agreement at the allotted price and there was an exchange gain of Rs.4.03 Lacs (net) which was shown as exceptional item during the year ended 31st March, 2010.

6) Capital work in progress includes equipments not

yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are :

7) Advances recoverable in cash or in kind under Loans & Advances (Schedule 9) include Rs. Nil (Previous Year – Rs.0.25 Lacs) due from an Officer /Director. Maximum amount due during the year Rs.0.25 Lacs (Previous Year – Rs.0.40 Lacs).

8) Company has entered into operating lease agreement for a premise. Lease is non- cancellable for a period of six years and renewable thereafter on mutually agreed terms.

9) The allottee / holder of 16,50,000 Nos. Warrants

issued by the Company on preferential basis on October 31, 2007, entitling them to exercise option to apply for equal number of equity shares at a price of Rs.152/- per share (including premium of Rs.142/-, 10% upfront amount paid in earlier year amounting to Rs.250.80 Lacs) did not exercise the option before the last date (as stipulated) i.e. April 30, 2009 and accordingly amount paid on stated warrants has been forfeited during year ended 31st March 2010.

(c) In accordance with the notification No. G.S.R. 225(E) dated 31st March 2009, issued by the Central

Government with regard to AS-11, the Company had exercised, the onetime option available, to adjust the exchange differences arising on long term foreign currency monetary items to the cost of depreciable capital assets in so far as it relates to the acquisition of such assets and in other cases, by transferring to the "Foreign Currency Monetary Item Translation Difference Account". Accordingly, the Company has carried over long term monetary exchange loss of Rs.Nil through "Foreign Currency Monetary Item Translation Difference Account" (Previous Year – Rs.18.11 Lacs), to be amortised over the balance period of such long term asset/liability but not beyond 31st March 2011. Further, the foreign exchange fluctuation loss of Rs.16.11 Lacs (Previous Year – gain of Rs.1,820.05 Lacs) taken in Pre operative expenditure on capital account has been taken to the cost of fixed assets.

(d) The Company took certain option structure, forward and interest rate / currency swap contracts to cover the foreign exchange risk related with the import of fixed assets. During the year, gain of Rs.233.92 Lacs (net) (Previous Year – gain of Rs.290.43 Lacs (net)) on foreign exchange derivatives taken for payments to suppliers of imported capital goods and loss of Rs.1.63 Lacs (Previous Year – loss of Rs.49.18 Lacs (net)) on mark to market on outstanding derivatives as on 31st March 2011 has been capitalized / shown as part of pre-operative expenses based on expert opinion, as the same is attributable to the fixed assets.

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

Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

11) Segment Reporting:

i) The Company is in only one line of business namely Plastic Film.

ii) The Segment Revenue in the geographical segments considered for disclosure is as follows:

(a) Revenues inside India include sales to customers located within India.

(b) Revenues outside India include sales to customers located outside India.

12) Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures" are given below:

A. Parties where control exists:

Subsidiary/Step down Subsidiaries:

– Polyplex (Thailand) Public Co Limited (PTL)

– Polyplex (Asia) Pte. Limited (PAPL)

– Polyplex (Singapore) Pte. Limited (PSPL)

– Polyplex Europa Polyester Film Sanayi

Ve Ticaret AS(PE)

– Polyplex (Americas) Inc. (PA)

– Polyplex Trading (Shenzhen) Co.

Limited (PTSL)

B. Other related parties with whom transactions have taken place during the year:

Key Management Personnel (KMP):

– Shri Sanjiv Saraf (Chairman)

– Shri Pranay Kothari (Executive Director)

– Shri Ranjit Singh (Whole Time Director)

Relative of Key Management Personnel:

– Smt. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

– Beehive Systems Private Limited

– Manupatra Information Solutions Private Limited

– Altivolus Infotech Private Limited

– Dalhousie Villa Private Limited

– Bhilangana Hydro Power Limited

13) Debtors over six months include overdue overseas debtors aggregating to Rs.Nil (Previous Year – Rs.Nil) (net of provision of Rs.Nil (Previous Year – Rs.20.23 Lacs)) where Company has initiated legal or other necessary action for recovery.

14 (a) The provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by Management.

(b) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the Management.

15) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the Management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

16) Current Year figures are not comparable with that of Previous Year due to startup of operations at Bazpur plant during Q4' 2009-10.

17) Figures for Previous Year have been regrouped and / or rearranged, wherever considered necessary to conform to the Current Year's classification.

18) Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs.Lacs with two decimals.


Mar 31, 2010

1) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs.670.01 Lacs, Previous Year - Rs.6,244.09 Lacs) - Rs.3,069.40 Lacs. (Previous Year - Rs.19,811.56 Lacs).

2) Contingent Liabilities not provided for, in respect of:

a) Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 283.90 283.74

Excise Duty & Customs Duty 22.95 22.95

Income Tax 73.54 73.54

Others 41.21 14.95

b) Bills discounted with banks - Rs.19.36 Lacs (Previous Year - Nil).

c) (i) Custom duty saved amounting to Rs.6,429.39 Lacs (Previous Year - Rs.1,627.82) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(ii) Import duty saved amounting to Rs.97.68 Lacs (Previous Year - Rs.Nil) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.

d) Guarantees given to the banks and others - Rs.17.50 Lacs (Previous Year - Rs.159.50 Lacs), including Rs.17.50 Lacs (Previous Year - Rs.17.50 Lacs) on behalf of other bodies corporate.

3) Import duty benefit under Duty Entitlement Pass Book (DEPB) Scheme and profit/loss on sale of DEPB aggregating to Rs.105.70 Lacs (Previous Year - Rs.126.98 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumed Account

4) In the last quarter of the year, Company has commenced commercial production of BOPET film, BOPP film, Metalized film & PET Chips at its Bazpur facility in District: Udham Singh Nagar, Uttarakhand.

5) The Companys investment in the preference share capital of its subsidiary viz. Polyplex (Asia) Pte. Limited has been redeemed during the year as per terms of the agreement at the allotted price resulting exchange gain of Rs.4.03 Lacs (Previous Year – Nil) (net), which has been shown as exceptional item.

6) The expenditure on Research & Development has been debited to the respective heads of account since such expenses cannot be segregated in view of the peculiar nature of activities relating to such work.

7) (a) As required by Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

8) Capital work in progress includes equipments not yet installed, construction/erection material, construction/erection work in progress, machinery at site and/or in transit, advance to suppliers and other pre-operative expenses pending allocation/ capitalization. Pre-operative expenses pending allocation/capitalization are:

9) Advances recoverable in cash or in kind under Loans & Advances (Schedule 7) include Rs.0.25 Lacs (Previous Year - Nil) due from an Officer/ Director. Maximum amount due during the year Rs.0.40 Lacs (Previous Year - Rs.1.67 Lacs).

10) The allottee/holder of 16,50,000 Nos. Warrants issued by the Company on preferential basis on October 31, 2007, entitling them to exercise option to apply for equal number of equity shares at a price of Rs.152/- per share (including premium of Rs.142/-, 10% upfront amount paid in earlier year amounting to Rs.250.80 Lacs) did not exercise the option before the last date (as stipulated) i.e. April 30, 2009 and accordingly amount paid on stated warrants has been forfeited during the year.

11) During the previous year, the Company entered into operating lease agreement for a premise. Lease is non- cancellable for a period of six years and renewable thereafter on mutually agreed terms.

(c) In accordance with the notification, G.S.R. 225(E) dated 31st March 2009, issued by the Central Government with regard to AS-11, the Company had exercised, the onetime option available, to adjust the exchange differences arising on long term foreign currency monetary items to the cost of depreciable capital assets in so far as it relates to the acquisition of such assets and in other cases, by transferring to the “Foreign Currency Monetary Item Translation Difference Account”.

Accordingly, the Company has carried over long term monetary exchange loss of Rs.18.11 Lacs through “Foreign Currency Monetary Item Translation Difference Account” (Previous Year - Rs.252.99 Lacs), to be amortised over the balance period of such long term asset/liability but not beyond March 31, 2011. Further, the foreign exchange fluctuation gain of Rs.1,820.05 Lacs (Previous Year loss of Rs.553.85 Lacs taken in Pre operative expenditure) on capital account has been taken to the cost of fixed assets.

(d) The Company took certain option structure, forward and interest rate/currency swap contracts to cover the foreign exchange risk related with the import of fixed assets. During the year, gain (net) of Rs.290.43 Lacs (Previous Year loss of Rs.1,904.69 Lacs (net)) on foreign exchange derivatives taken for payments to suppliers of imported capital goods and loss of Rs.49.18 Lacs (Previous Year loss of Rs.245.61 Lacs (net)) on mark to market on outstanding derivatives as on March 31, 2010 has been capitalized/shown as part of pre-operative expenses based on expert opinion, as the same is attributable to the fixed assets.

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

Defined Contribution Plan

Contribution to Defined Contribution Plan recognised and charged off/debited to Profit and loss Account/Pre-operative Expenses pending allocation are as under:

The Employees Gratuity Fund/Scheme managed by Life Insurance Corporation of India is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation for Leave Encashment is recognised in the same manner as gratuity.

13) Segment Reporting:

i) The Company is in only one line of business namely Plastic Film.

ii) The Segment Revenue in the geographical segments considered for disclosure is as follows:

(a) Revenues inside India include sales to customers located within India.

(b) Revenues outside India include sales to customers located outside India.

14) Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures "are given below:

A. Parties where control exists:

Subsidiary/Step down Subsidiaries:

Polyplex (Thailand) Public Co Limited (PTL)

Polyplex (Asia) Pte. Limited (PAPL)

Polyplex (Singapore) Pte. Limited (PSPL)

Polyplex Europa Polyester Film San. Ve Tic A.S.(PE)

Polyplex (Americas) Inc. (PA)

Polyplex Trading (Shenzhen) Co. Limited (PTSL) (w.e.f. July 15, 2009)

B. Other related parties with whom transactions have taken place during the year:

Key Management Personnel:

Shri Sanjiv Saraf (Chairman)

Shri Pranay Kothari (Executive Director)

Shri Ranjit Singh (Whole Time Director)

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

Beehive Systems Private Limited

Manupatra Information Solutions Private Limited

Altivolus Infotech Private Limited

Dalhousie Villa Private Limited

Bhilangana Hydro Power Limited

15) Debtors over six months include overdue overseas debtors aggregating to Nil (Previous Year - Rs.60.81 Lacs) (net of provision of Rs.20.23 Lacs (Previous Year - Rs.20.23 Lacs)) where Company has initiated legal or other necessary action for recovery.

16) (a) The provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the Management.

(b) Income Tax assessment in respect of certain years is in progress and for certain years some additions have been made. In respect of additions made/disallowances, in some cases the Company has filed appeals with Appellate Authorities, pending decisions no provisions has been considered necessary by the Management.

17) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS-28), the Management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

18) Figures for Previous Year have been regrouped and/or rearranged, wherever considered necessary to conform to the current years classification.

19) Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs. Lacs with two decimals.