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Notes to Accounts of Shri Jagdamba Polymers Ltd.

Mar 31, 2023

Terms/ Rights attached to equity shares

The Company has one class of equity shares having a par value of Rs. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to their shareholding.

a) General Reserve

General reserve is created by the Company by appropriating the balance of Retained Earnings.

b) Retained Earnings

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

c) Capital Reserve Account

Any proft or loss on purchase, sale. Issue or cancellation of the Company''s own equity instrument is transferred to capital reserve.

1 Term Loan- Referred above taken from banks secured by first charge of entire fixed assets and second charges on current assets of the company. The said Term Loan is further secured by Personal Guarantee of director of the company.

Nature of Security with bank

i) Primary Security:

First pari passu charge by way of hypothecation over the Company''s entire stocks of inventory, receivables and current assets of the Company

ii) Collateral:

Second pari passu charge on the entire fixed assets of the Company and personal guarantee of promoter of the company

iii) Interest

The above loan carried interest rate in the range of 4% to 9%

Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM). The CODM is considered to be the Board of Directors who makes strategic decisions and is responsible for allocating resources and assessing performance of the operating segments.

Contingent Liabilities and Capital Commitment a. Claims against the Company (including unasserted claims) not acknowledged as debt: (? in Lakhs) As At As At 31/03/2023 31/03/2022
Service Tax
-2013-2014	3.31	3.31
-2014-2015	5.11	5.11
-2015-2016	1.04	1.04
Excise Duty
-2016-2017	11.59	11.59
Custom
-2017-2018	635.35	635.35
-2018-2019	225.85	225.85

i) Service Tax

Joint Commissioner C.E. Isssued Duty Demand For Sales Commission of Service Tax Credit. Reference number as F.No.CE/15-41/Circle-II/AP-VI/FAR-68/R.P.03/2015-16 dated 21.07.2016.

ii) Excise Duty

Duty demanded against semifinish and finish goods destroyed in fire Reference No F.No. III/Remission/Shree Jagdamba/04/17-18 dated 22.05.2018

iii) Custom

Show cause notices issued under The Custom Act,1962,Pre Import Condition From Dri, Kolkata And Transfer To Dri, Mumbai Vide Notification No. 17/2021-Customs(N.T./Caa/Dri)Dated 09.02.2021

The management assessed that fair value of cash and short-term deposits, trade receivables, trade payables, and other current financial assets and liabilities approximate their carrying unts largely due to the short-term maturities of thes e instruments.

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

Long-term fixed-rate receivables/borrowings are evaluated by the Company based on parameters such as interest rates, specific country risk i) factors, individual creditworthiness of the customer and the risk characteristics of the financed project. Based on this evaluation, allowances are

taken into account for the expected losses ofthese receivables.

Fair values of the Companyâs interest-bearing borrowings and loans are determined by using DCF method using discount rate that reflects the issuerâs borrowing rate as at the end of the reporting period. The own non- performance risk as at March 31, 2023 was assessed to be insignificant.

The fair values of the unquoted equity shares, if any have been estimated using a discounted cash flow model. The valuation requires management to make certain assumptions about the model inputs, including forecast cash flows, discount rate, credit risk and volatility, the probabilities of the iii) various estimates within the range can be reasonably assessed and are used in management''s estimate of fair value for these unquoted equity investments.

Financial Risk Management

The Companyâs principal financial liabilities, comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Companyâs operations and to provide guarantees to support its operations. The Companyâs principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Company''s activities expose it to a variety of financial risks: credit risk, liquidity risk, foreign currency risk and interest rate risk. The Company''s primary focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The primary market risk to the Company is foreign exchange risk. The Company uses foreign currency borowings to mitigate foreign exchange related risk exposures.

The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below:

Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Companyâs receivables from customers and investment securities. Credit risk arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding accounts receivable. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counter parties, taking into account their financial position, past experience and other factors.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the default risk of the industry and country in which the customer operates, also has an influence on credit risk assessment. In addition, receivable balances are monitered on an ongoing basis with the result that the Company''s exposure to Bad debt is not significant. Also the Company doesnot enter into sales transaction with customers having credit loss history. There are no significant Credit risk with related parties of the Company. The Company''s is exposed to Credit risk in the event of non payment of customers. Credit risk concentration with respect to Trade Receivables is mitigated by the Company''s large customer base. Adequate expected credit losses are recognised as per the assessment.

The history of Trade receivables shows an allowance for bad and doubtful debts of Rs Nil ( Nil as at March 31,2023). The Company has made allowance of Rs Nil ( Nil as at March 31,2022) against Trade receivable of Rs. 7033.06 Lakhs ( Rs. 7765.36 Lakhs as at March 31,2022).

Bank Deposits

The company maintains its cash and cash equivalents and bank deposits with reputed and highly rated bank. Hence, there is no significant credit risk on such deposits.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The company does not expect any losses from non- performance by these counter-parties, and does not have any significant concentration of exposures to specific industry sectors.

Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk through credit limits with banks.

The Companyâs corporate treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management.

The Companyâs exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in U.S. dollars and British pound sterling ) and foreign currency borrowings (primarily in U.S. dollars ). A significant portion of the Companyâs revenues and cost are in these foreign currencies, while balance portion of costs are in Indian rupees. As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Companyâs revenues measured in rupees may decrease. The exchange rate between the Indian rupee and these foreign currencies has changed substantially in recent periods and may continue to fluctuate substantially in the future. The Company''s management meets on a periodic basis to formulate the strategy for foreign currency risk management.

Consequently, the Company management believes that the borrowings in foreign currency and its assets in foreign currency shall mitigate the foreign currency risk mutually to some extent.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency USD on account of outstanding trade receivables and trade payables in USD.

The following table details the Companyâs sensitivity to a 2% increase and decrease in INR against the USD . 2% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents managementâs assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 2% change in foreign currency rates. A positive number below indicates an increase in profit or equity where the INR strengthens 2% against the relevant currency. For a 2% weakening of the INR against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

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 Companyâs exposure to the risk of changes in market interest rates relates primarily to the Companyâs debt obligations with floating interest rates and investments.

Capital management

The Companyâs policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The Company monitors the return on capital. The Companyâs objective when managing capital is to maintain an optimal structure so as to maximize shareholder value.

(a) Details of crypto currency or virtual currency

The Company has neither traded nor invested in Crypto currency or Virtual Currency during the financial year ended March 31, 2023 and March 31, 2022. Further, the Company has also not received any deposits or advances from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency.

(b) Undisclosed income

During the year ended March 31, 2023 and March 31, 2022, the Company has not surrendered or disclosed as income any transactions not recorded in the books of accounts in the course of tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

The Company has not granted any loans or advances in nature of loans to promoters/directors/KMPs/Related parties (as defined under the Companies Act, 2013) for the year ended March 31, 2023 and March 31, 2022.

(d) Compliance with numbers of layers of companies

The Company is in compliance with the number of layers of companies in accordance with clause 87 of Section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017 during the year ended March 31, 2023 and March 31, 2022.

(e) Utilisation of borrowed funds and share premium

During the year ended March 31, 2023 and March 31, 2022, the Company has not advanced or loaned or invested funds (either borrowed funds or share premium or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

During the year ended March 31, 2023 and March 31, 2022, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or provide any guarantee, security, or the like on behalf of the ultimate beneficiaries.

(f) Relationship with struck off companies

The Company does not have any transactions with the companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956 during the year ended March 31, 2023 and March 31, 2022.

(g) The Company has not been declared Wilful Defaulter by any bank or financial institution or government or any government authority.

(h) No proceeding have been initiated nor pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act,1988 (45 of 1988) and rules made thereunder.

Mar 31, 2018

1. Company Overview

Shri Jagdamba Polymers Limited (âthe Companyâ) is a public limited Company established in the year 1985 and is listed on BSE Limited. The registered office of the Company is situated at 802 Narnarayan Complex, Nr. Navrangpura Post Office, Navrangpura, Ahmedabad, Gujarat - 380009. The Company is engaged in the business of technical textile, geo textile and other allied products i.e manufacturing of PP/ HDPE woven and non-woven fabrics and bags.

2. Significant Accounting Policies:-

i. Basis of Preparation

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified underthe Companies (Indian Accounting Standards) Rules, 2016. For all periods upto and including theyear ended March 31,2017, the Company prepared its financial statements in accordance with accounting standards notified under the Section 133 of the Act, read with Rule 7 ofthe Companies (Accounts) rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2016, as amended. These financial statements are the first financial statements of the Company under Ind AS.

Refer Note 28 for information on adoption of Ind AS by the Company. The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities measured at fair value (refer accounting policies regarding financial instruments). The financial statements are presented in â and all values are rounded to the nearest Lakhs, except when otherwise indicated.

a) Terms/ Rights attached to equity shares

The Company has one class of equity sahres having a par value of Rs. 1/- each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting.

During the year ended March 31, 2018, the amount of per share dividend recognized as distributions to equity shareholders was â0.10/- (March 31,2017: Rs. 1/-;April 1,2016;Rs. 1/-) i.e 10%eachyear.

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 distributin will be in proportion to the number of equity shares held by the shareholders.

Nature and purpose of Reserves

a. General Reserve Account

This represents appropriation of profit by the Company

b. Retained Earnings

Retained earnings comprises of undistribute earnings net of amounts transferred to General Reserve

c. Capital Reserve Account

Any profit or loss on purchase, sale. Issue or cancellation of the Companyâs own equity instrument is transferred to capital reserve.

3.1 Term Loan- Secured referred above taken from banks are secured against first charge of entire fixed assets and second charges on current assets of the company. The said Term Loan is further secured by Personal Guarantee of Two directors of Company and others.

Note

Terms of Repayment : Repayable on Demand Nature of Security

i) Primary Security:

First pari passu charge by way of hypothecation over the Companyâs entire stocks of inventory and receivables along with other working capital banks under consortium.

ii) Collateral:

Second pari passu charge on the entire fixed asets of the Company and personal guarantee of two directors & others.

4. Earnings per share ( EPS)

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

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The following reflects the income and share data used in the basic and diluted EPS computations:-

5. Capital Management

For the purpose of the Companyâs capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders. The primary objective of the Companyâs capital management is to maximize the shareholder value.

6. FIRST-TIME ADOPTION OF IND AS

These financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 ofthe Act, read with Rule 7 ofthe Companies (Accounts) Rules, 2014 and the Companies (Indian Accounting Standards) Rules, 2016,as amended.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ended on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Companyâs opening balance sheet was prepared as at April 1, 2016, the Companyâs date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017.

Exemptions applied:

I nd AS 101 allows first-time adopters certain exemptions from the retrospective location of certain requirements under Ind AS. The Company has applied the following exemptions:

Deemed cost for property, plant and equipment and intangible assets

Since there is no change in the functional currency, the Company has elected to continue with the carrying value as at April 1, 2016 for all of its intangibles and property plant & equipment as recognised in its Previous GAAP financial as deemed cost at the transition date. Mandatory exceptions Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from impairment of financial assets based on expected credit loss model where application of Indian GAAP did not require estimation.

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2016 (i.e. the date oftransition to Ind-AS) and as of March 31,2017.

Effect of the Transition to Ind AS

Reconciliations of the Companyâs balance sheets prepared under Indian GAAP and Ind AS as of April 1, 2016 and March 31, 2017 are also presented as under:-

There is no Reconciliations of the Companyâs income statements for the year ended March 31, 2017 prepared in accordance with Indian GAAP and Ind AS.

7. Fair values

The management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values.

8. Contingent Liabilities

Demand raised by Income Tax Authority amounting to Rs. 51.04 lakhs against which Company is contesting the demand and has filed appeals and the Management, including its tax advisors, believe that it is possible, but not probable, the action will succeed and accordingly no provision for liability has been recognized in the financial statements. However, out of the total disputed dues, an amount of Rs. 10.50 lakhs was pre-deposited by the Company.

9. Significant Accounting Judgements, estimates and assumptions

The preparation of the Companyâs Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. 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.

Judgements

In the process of applying the Companyâs accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the Financial Statements.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the Financial Statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use.

Impairment loss from Property, Plant & Equipment is assessed as at the close of each financial year and appropriate provision, if required, is considered in the accounts.

Deferred income taxes

The Companyâs tax expense for the year is the sum of the total current and deferred tax charges. The calculation of the total tax expense necessarily involves a degree of estimation and judgement in respect of certain items. A deferred tax asset is recognised when it has become probable that future taxable profit will allow the deferred tax asset to be recovered. Recognition, therefore involves judgement regarding the prudent forecasting of future taxable gains and profits of the business.

Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of the obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount 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.

10. Major Financial Risk Management Objectives

The Company is exposed to certain financial risks that could have significant influence on the Companyâs business and operational/ financial performance. These include market risk (including commodity price risk, currency risk and interest rate risk), credit risk and liquidity risk.

The Management reviews and approves risk management framework and policies for managing these risks and monitor suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

In line with the overall risk management framework and policies, the treasury function provides services to the business, monitors and manages through an analysis of the exposures by degree and magnitude of risks. The Company does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

Market Risk

Market risk is the risk or uncertainty arising from possible market price movements and their impact on the future performance of a business. The major components of market risk are commodity price risk, foreign currency exchange risk and interest rate risk. Commodity Price Risk

The primary commodity price risks that the Company is exposed to includes granules movement that could adversely affect the value of the Companyâs financial assets or expected future cash flows. The Company primarily enters into monthly or yearly contracts and revisits the prices periodically.

Foreign Currency Risk Management

The Company imports raw materials, components and capital good from outside India, incurs few expenditure as well as make export sales to countries outside India. The Company is, therefore, exposed to foreign currency risk principally arising out of foreign currency movement against the Indian Currency.

Unhedged Foreign Currency

The carrying amounts in Indian Rupees of the company foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

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. Since the Company has interest bearing borrowings, the exposure to risk of changes in market interest rates will impact the profitability of the Company.

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has adopted a policy of dealing only with creditworthy counterparties as a means of mitigating the risk of financial loss from defaults.

Trade receivables consist of a large number of customers, spread across India. Ongoing credit evaluation is performed on the financial condition of accounts receivable.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure is the total of the carrying amount of balances with banks, trade receivables and other financial assets.

Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

11. Related Party Transactions

List of Related Parties and Relationships:

1. Relative Parties where significant interest exists:

(i) M/s. Shakti Polyweave Private Limited

(ii) M/s. Shri TechTex (A Partnership Firm)

2. Key Management Personnel & Relatives:

(i) Mr.RamakantBhojnagarwala ChairmanCumManagingDirector

(ii) Mr. Kiranbhai Bhailalbhai Patel Director

(iii) Mr.MaheshG.Joshi Director

(iv) Mr.AshishBhaiya Director

(v) Mr. VikasAgrawal Director

(vi) Mrs. Mudra Kansal Director

(vii) Mrs.ShradhaAgarwal RelativeofManagingDirector

(viii) Mr. HanskumarAgarwal Relative ofManaging Director

(ix) Mrs.RadhadeviAgarwal RelativeofManagingDirector

12. Balance in parties accounts whether in debits or credits are conciled on subsequent transaction in next financial year.

13. I n the opinion of the Board, Current & Non-Current Financial Assets and Liabilites are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

14. Inter Division Transactions

Job sales invoices for Rs.101.71 lakhs ( P.Y. Rs. 473.04 lakhs) raised by Unit II on Unit I.

15. Previous Year Figures

Previous year figures have been regrouped and reclassified where necessary to confirm to this yearâs classification.

Mar 31, 2016

NOTE: 1.DEFERRED TAXATION:

a) In conformity with Accounting Standard No. 22 issued by The Institute of Chartered Accountants of India on "Accounting for Taxes on Incomeâ, the Company has provided for net deferred tax liability during the year amounting to Rs. 120.15 Lacs (Previous year Rs. 11.80 Lacs).

b) Major components of Deferred Tax Assets/Liabilities:

NOTE: 2. SEGMENT REPORTING:

As per Accounting Standard AS- 17, during the year under review, the business of the Company falls under a three segment namely:-

- Technical Textiles / Woven Sacks

- Woven Fabrics / Packaging Products

- Wind Mill Power Generation Income

NOTE: 3. RELATED PARTY DISCLOSURES:

List of Related Parties and Relationships:

4. Relative Parties where significant interest exists :

(i) Shakti Polyweave Pvt. Ltd.

5. Key Management Personnel & Relatives:

(i) Shri Ramakant Bhojnagarwala Chairman Cum Managing Director

(ii) Shri Kiran B. Patel Director

(iii) Shri Kantibhai I. Patel Director

(iv) Shri Ashish Bhaiya Director

(v) Shri Vikas Agrawal Director

(vi) Smt. Shradha Agarwal Relative of Managing Director

(vii) Shri Hanskumar Agarwal Relative of Managing Director

(viii)Smt. Radhadevi Agarwal Relative of Managing Director

6. Balance in parties accounts whether in debits or credits are reconciled on subsequent transaction in next financial year.

7. In the opinion of the Board; Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

8. Inter Division Transactions:

9. Contingent Liabilities and commitments not provided for: NIL

Mar 31, 2015

1. Term Loan- Secured referred above taken from banks are secured against first charge of entire fixed assets and second charges on current assets of the Company. The said Term Loan is further secured by Personal Guarantee of Two Directors of Company and others.

2. Secured By hypothecation of current assets viz. Raw Materials, Stock in Process, finished Goods, other stocks and debtors, second charge over fixed assets and personal guarantee of two Directors of Company and others.

NOTE: 3. DEFERRED TAXATION:

a) In conformity with Accounting Standard No. 22 issued by The Institute of Chartered Accountants of India on "Accounting for Taxes on Income", the Company has provided for net deferred tax liability during the year amounting to Rs. 11.80 Lacs (Previous year Deferred Tax assets of Rs. 44.98 Lacs/-).

As per Accounting Standard AS- 17, during the year under review, the business of the Company falls under a three segment namely:-

- Technical Textiles / Woven Sacks

- Woven Fabrics / Packaging Products

- Wind Mill Power Generation Income

List of Related Parties and Relationships:

1. Relative Parties where significant interest exists :

(i) Shakti Polyweave Pvt. Ltd.

(ii) Shrima Tech Tex Pvt. Ltd.

2. Key Management Personnel & Relatives:

(i) Shri Ramakant Bhojnagarwala Chairman Cum Managing Director

(ii) Shri Kiran B. Patel Director

(iii) Shri Kantibhai I. Patel Director

(iv) Shri Ashish Bhaiya Director

(v) Shri Vikas Agrawal Director

(vi) Smt. Shradha Agarwal Relative of Managing Director

(vii) Shri Hanskumar Agarwal Relative of Managing Director

(viii) Smt. Radhadevi Agarwal Relative of Managing Director

4. Balance in parties accounts whether in debits or credits are reconciled on subsequent transaction in next financial year.

5. In the opinion of the Board; Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

6. Inter Division Transactions:

Job charges invoices for Rs. 399.03 Lacs raised by Unit No. II on Unit No. I.

7. Contingent Liabilities and commitments not provided for: NIL

Mar 31, 2014

1.1 Term Loan- Secured referred above taken from banks are secured against first charge of entire fixed assets and second charges on current assets of the Company. The said Term Loan is further secured by Personal Guarantee of Two Directors of Company and others.

2.1 Secured By hypothecation of current assets viz. Raw Materials, Stock in Process, finished Goods, other stocks and debtors, second charge over fixed assets and personal guarantee of two Directors of Company and others.

NOTE: 3 DEFERRED TAXATION:

a) In conformity with Accounting Standard No. 22 issued by The Institute of Chartered Accountants of India on "Accounting for Taxes on Income", the Company has provided for net deferred tax liability during the year amounting to Rs.44.98 Lacs (Previous year Deferred Tax assets of Rs.29.46 Lacs/-).

b) Major components of Deferred Tax Assets/Liabilities:

NOTE: 4 RELATED PARTY DISCLOSURES:

List of Related Parties and Relationships:

1. Relative Parties where significant interest exists :

(i) Shakti Polyweave Pvt. Ltd.

(ii) Shrima Tech Tex Pvt. Ltd.

2. Key Management Personnel & Relatives:

(i) Shri R. K. Bhojnagarwala Chairman Cum Managing Director

(ii) Shri K. B. Patel Director

(iii) Shri K. I. Patel Director

(iv) Shri Ashish Bhaiya Director

(v) Shri Vikas Agrawal Director

(vi) Smt. Shradha Agarwal Relative of Managing Director

(vii) Shri Hanskumar Agarwal Relative of Managing Director

(viii) Smt. Radhadevi Agarwal Relative of Managing Director

5. Balance in parties accounts whether in debits or credits are reconciled on subsequent transaction in next financial year.

6. In the opinion of the Board; Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

7. Inter Division Transactions:

Job charges invoices for Rs.342.70 Lacs raised by Unit No. II on Unit No. I.

8. Additional Information under Schedule VI of the Companies Act; 1956.

9. Contingent Liabilities and commitments not provided for:

(in Lacs)

Particulars 2013-2014 2012-2013

(a) Bank Guarantee NIL 123.39

(b) Show Cause Notice/Demand on NIL 2.44 account of Excise (in Appeal) (The Company does not expect any liability in view of the legal opinion obtained, therefore no Provision has been made).

(c) Letter of Credit NIL 158.79

10. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2014 Rs.Nil (P. Y. Rs. 13.30 Lacs).

Mar 31, 2013

NOTE: 1 SEGMENT INFORMATION:

The Company is principally engaged in the business of woven sacks manufacturing. Accordingly there are no reportable segments as per Accounting Standard No. 17 issued by The Institute of Chartered Accountants of India on "Segment Reporting".

NOTE: 2 FOREIGN CURRENCIES:

Deficit of Rs. 40.10 Lacs (Previous Year deficit of Rs. 63.25 Lacs) being the impact of foreign exchange fluctuation on account of borrowing for working capital facilities have been adjusted in interest expenses.

NOTE: 3 DEFERRED TAXATION:

a) In conformity with Accounting Standard No. 22 issued by The Institute of Chartered Accountants of India on "Accounting for Taxes on Income", the Company has provided for net deferred tax assets during the year amounting to Rs. 29.46 Lacs (Previous year liabilities of Rs. 34.82 Lacs/-).

List of Related Parties and Relationships:

1. Relative Parties where significant interest exists :

(i) Shakti Polyweave Pvt. Ltd.

(ii) Shrima Tech Tex Pvt. Ltd.

NOTE: 4 NOTES ON ACCOUNTS:

1. Balance in parties accounts whether in debits or credits are reconciled on subsequent transaction in next financial year.

2. In the opinion of the Board; Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions for depreciation and all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

3. Inter Division Transactions:

Job charges invoices for Rs. 331.49 Lacs raised by Unit No. II on Unit No. I.

4. Contingent Liabilities and commitments not provided for:

(Rs. in Lacs)

Particulars 2012-2013 2011-2012

(a) Bank Guarantee 123.39 80.30

(b) Show Cause Notice/Demand on account of Excise (in Appeal) (The Company does not expect any liability in view of the 2.44 5.35 legal opinion obtained, therefore no Provision has been made).

( c ) Letter of Credit 158.79 93.30

5. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2013 Rs.13.30 Lacs (P. Y. Rs.25.00 Lacs).

Mar 31, 2012

NOTE: 1 SEGMENT INFORMATION:

The Company is principally engaged in the business of woven sacks manufacturing. Accordingly there are no reportable segments as per Accounting Standard No. 17 issued by The Institute of Chartered Accountants of India on "Segment Reporting".

NOTE: 2 FOREIGN CURRENCIES:

Deficit of Rs. 63.25 Lacs (Previous Year Surplus of Rs. 9.24 Lacs) being the impact of foreign exchange fluctuation on account of borrowing for working capital facilities have been adjusted in interest expenses.

NOTE: 3 DEFERRED TAXATION:

a. In conformity with Accounting Standard No. 22 issued by The Institute of Chartered Accountants of India on "Accounting for Taxes on Income", the Company has provided for net deferred tax liabilities during the year amounting to Rs. 34.82 Lacs(Previous year Rs. 16.75 Lacs/-).

NOTE: 4 RELATED PARTY DISCLOSURES:

List of Related Parties and Relationships:

1. Relative Parties where significant interest exists :

(i) Shakti Polyweave Pvt. Ltd.

(ii) Shrima Tech Tex Pvt. Ltd.

(iii) Shree Jagdamba Textiles Pvt. Ltd.

2. Key Management Personnel & Relatives:

(i) Shri R. K. Bhojnagarwala Chairman cum Managing Director

(ii) Shri K. B. Patel Whole time Director

(iii) Shri K. I. Patel Director

(iv) Shri B. S. Saini Director

(v) Shri Ashish Bhaiya Director

(vi) Smt. Shradha Agarwal Relative of Managing Director

(vii) Shri Hanskumar Agarwal Relative of Managing Director

(viii) Smt. Radhadevi Agarwal Relative of Managing Director

5. Contingent Liabilities and commitments not provided for:

(Rs. in Lacs)

Particulars 2011-2012 2010-2011

(a) Bank Guarantee 80.30 80.30

(b) Show Cause Notice/Demand on account of Excise (in Appeal) (The Company does not expect any liability in view of the 5.35 6.85 legal opinion obtained, therefore no Provision has been made).

(c) Letter of Credit 93.30 112.60

6. Estimated amount of contracts remaining to be executed on capital account and not provided for as on 31st March, 2012 Rs. 25.00 Lacs (P. Y. Rs. 435.31 Lacs)

Mar 31, 2010

A) Previous years figures have been re-arranged & regrouped wherever necessary to make them comparable with those of current year.

b) Segment Information:

The Company is principally engaged in the business of woven sacks manufacturing Accordingly there are no reportable segments as per Accounting Standard No. 17 issued by The Institute of Chartered Accountants of India on "Segment Reporting".

c) Foreign Currencies:

Surplus of Rs. 2.76 Lakhs (Previous Year loss of Rs. 0.93 lakhs) being the impact of foreign exchange fluctuation on account of borrowing for working capital facilities have been adjusted in interest expenses.

d) Deferred Taxation:

1. In conformity with Accounting Standard No. 22 issued by The Institute of Chartered Accountants of India on "Accounting for Taxes on Income", the Company has provided for net deferred tax liabilities during the year amounting to Rs. 5,87,394/- (Previous year Rs. 21,36,339/-).

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