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Notes to Accounts of Astral Ltd.

Mar 31, 2023

a) Aggregate carrying value of unquoted investments is ? 2,874 Million as at March 31, 2023 (as at March 31, 2022: ? 451 Million).

b) Aggregate amount of diminution in value of investments is ? 194 Million as at March 31, 2023 (as at March 31, 2022: ? 194 Million).

c) The Company has promoted section 8 Company, i.e Astral Foundation, under the Companies Act, 2013 for the purpose of carrying out CSR activities.

d) The Company has subscribed to 19,400 (0.0001%) 10 years Optionally Convertible Debentures (OCDs) equivalent to face value of ? 0.1 Million. The OCD are convertible into 51% equity shares of Gem Paints Private Limited at the option of holder of the OCD. Pursuent to the subsription agreement the Company has represenation over majority of Board of Directors of Gem Paints Private Limited with effect from April 1, 2022 and hence Gem Paints Private Limited is treated as subsidiary of the Company.

1 The Company offers credit period up to 180 days.

2 Before accepting any new customer, the Company assesses the potential customer''s creditability and defines credit limits for each customer. Such limits are reviewed annually.

3 In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

f) Stock options granted under the Employee Stock Options scheme :

1. Details of the Employee stock option plan of the Company :

Astral Limited (the Company) formulated Employees Stock Option Scheme viz. Astral Employee Stock Option Scheme 2015 ("the Scheme") for the benefit of employees of the Company. Shareholders of the Company approved the Scheme by passing special resolution through postal ballot dated October 21, 2015 and was further amended vide shareholders resolution passed

in the Annual General Meeting held on August 21, 2020. Under the said Scheme, Nomination and Remuneration Committee is empowered to grant stock options to eligible employees of the Company, up to 150,000 (Ex-bonus) Minimum vesting period of stock option is one year and exercise period of stock option is one year from the date of vesting.

The Committee granted 16,282 stock options on November 14, 2015, 21,600 stock options on March 30, 2017, 22,400 stock options on November 13, 2017, 7,450 stock options (Exbonus) on June 29, 2019, 9,310 stock options on October 24, 2019, 12,413 stock options on August 4, 2020 ,12,413 stock options on July 1, 2021 and 15,996 stock options on October 8, 2022 totaling 119,724 stock options till date. Each stock option is exercisable into one equity share of face value of ? 1/- each.

The Company made bonus issue of shares in the proportion of 1:3 i.e. 1 (One) bonus equity shares of ? 1/- each for every

3(Three) fully paid-up equity shares held during the financial year. A fair and reasonable adjustment was made in respect of options unvested/yet to be exercised, options available for grant and their exercise price to give effect to the bonus in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2015. Post Bonus issue adjustment the Exercise price of all stock options available for grant and options unvested/yet to be exercised arrives at ? 22.5 share (Exbonus exercise price of all stock options was ? 30/- share). Each stock option is exercisable into one equity share of face value of ? 1/- each.

Further the Company has obtained in principle approval from stock exchanges for additional 37,652 equity shares under Astral Employee Stock Option Scheme, 2015 pursuant to Bonus Issue of shares by the Company as approved by shareholders vide ordinary resolution dated March 3, 2023.

Notes

a) In August 2022 and November 2022, the dividend of ? 1.75 per share (total dividend ? 352 Million) and ? 1.25 per share (total dividend ? 251 Million) respectively, was paid to holders of fully paid equity shares.

b) In August 2021 and November 2021, the dividend of ? 1/- per share (total dividend ? 201 Million) and ? 1.25 per share (total dividend of ? 251 Million) respectively, was paid to holders of fully paid equity shares.

c) During the year, the Company allotted 67,152,893 equity shares of ? 1/- each as fully paid up bonus shares by utilising securities premium amounting to ? 67 Million, pursuant to an ordinary resolution passed after taking the consent of shareholders through Extra Ordinary General Meeting.

d) Nature and Purpose of reserve Capital reserve

The Company has created capital reserve out of capital subsidies received from state Governments of ? 4 Million, further Capital Reserve of ? 91 Million created on business combination of Resinova Chemie Limited and Astral Biochem Private Limited.

Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. This reserve is available for utilization in accordance with the provisions of the Companies Act, 2013. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium.

General reserve

General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. It can be used for distribution to equity shareholders only in compliance with the Companies Act, 2013, as amended.

Revaluation Reserve

The Company has created revaluation reserve out of revaluation of land carried out during the year 2004-05.

Shares pending allotment

Shares pending allotment represents equity shares to be issued pursuant to business combination. (Note 38)

Stock Options Outstanding Account

Stock Option Outstanding Account is used to recognise grand date fair value options vested to employees under various equity settled schemes. The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to Stock Options Outstanding Account.

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.

34. EMPLOYEE BENEFITS:

Post-employment Benefit Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note 27 ? 74 Million (Previous Year: ? 64 Million).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to insurance service providers who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

The defined benefit plans typically expose to the Company to various risk such as;

Interest rate risk: A fall in the discount rate which is linked to the Government Securities. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance Company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using" Projected Unit Credit" method at the end of the reporting period which is the same as that applied in

calculating the defined benefit obligation liability recognised in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of ? 14 Million (as at March 31, 2022 : ? 13 Million) to the defined benefit plans during the next financial year.

The remuneration of key management personnel is determined by the remuneration committee. The same is including employer contribution to provident fund and exclusive of employees stock options and provision for liability in respect of leave earned and gratuity since it is based on actuarial valuation done on an overall basis for all employees.

ii. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

iii. The amounts outstanding are unsecured and will be settled in cash. No expense has been recognised in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.

iv. Transactions/balances during and end of the year/previous year are stated without considering impact of fair valuation carried out as per Ind AS.

38. MERGER OF RESINOVA CHEMIE LIMITED AND ASTRAL BIOCHEM PRIVATE LIMITED

The Board of Directors of the Company at its meeting held on June 7, 2021 approved the scheme of amalgamation of the Company with Resinova Chemie Limited ("RCL") and Astral BioChem Private Limited ("ABPL") with an appointed date of April 1, 2021, under section 230 to 232 and other applicable provisions of the Companies Act, 2013. The Scheme of Amalgamation of Resinova Chemie Limited and Astral BioChem Private Limited with the Company, was approved by the Hon''ble National Company Law Tribunal ("NCLT") Ahmedabad Bench vide its Order dated September 5, 2022. The certified copy of the Order along with certified copy of the Scheme was filed by the respective companies, with the Registrar of Companies on September 6, 2022 ("Effective Date"). The management has determined this as a subsequent adjusting event and hence, the subsidiaries has been amalgamated with effect from appointed date of April 1, 2021.

1 The above net assets mainly include net assets of RCL. The net assets of ABPL are less that f 1 Million.

2 As an integral part of the aforesaid Scheme, the non-controlling shareholders of RCL were issued 71 new equity shares having face value and paid-up amount of f 1/- each for one fully paid equity share of RCL, which issued and alloted (Note 14).

3 As a result of above transaction, Non-Controlling Interest (NCI) amounting to f 92 Million was settled by issuance of equity shares. The differential amount of f 91 Million was transferred to capital reserve account as on April 1, 2021. (Note 14)

4 The authorised share capital of the Transferee Company, automatically stands increased from the effective date, by clubbing the authorised share capital of the Transferor Company which is f 58 Million divided into 5 Million equity shares of f 10 each.

#The Board of Directors of the Company had, at its meeting held on May 27, 2022 approved the consolidated financial statements of the Company for the year ended March 31, 2022 and the same were adopted at the Annual General Meeting of the Company held on August 29, 2022. The Company has also applied guidance given in Ind AS Technical Facilitation Group''s Bulletin issued by ICAI (in accordance with Ind AS 103- Business Combination) and used carrying amounts as appearing in the consolidated financial statements of the Company while applying the pooling of interest method.

39. FINANCIAL INSTRUMENTS

1. Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in note 15 off set by cash and bank balances) and total equity of the Company.

The Company''s risk management committee reviews the risk capital structure of the Company. As part of this review the Company considers the cost of capital and the risk associated with each class of capital.

There have been no transfers amount in Level 1, Level 2 and Level 3 during the years ended March 31, 2023 and March 31, 2022.

3. Financial risk management objectives

The Company''s financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other financial assets.

The Company''s business activities are exposed to a variety of financial risks, namely market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company''s senior management has the overall responsibility for establishing and governing the Company''s

risk management framework who are responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A. Management of market risk

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- interest rate risk

i. Currency risk

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk.

Derivative instruments:

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency: USD, EUR and GBP.

The following table details, Company''s sensitivity to a 5% increase and decrease in the rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there would be a comparable impact on the profit and equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and five years. The above sensitivity does not include the impact of foreign currency forward contracts and option contracts which largely mitigate the risk.

ii. Interest rate risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligation with floating interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

B. Management of credit risk

credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 9 - Trade receivable).

C. Management of liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its

liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and longterm funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.


40. LEASE:

Company as a lessee

The Company''s lease asset classes primarily consist of leases for Tangible assets. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether: (1) the contract involves the use of an identified asset (2) the Company has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the Company has the right to direct the use of the asset.

42. SEGMENT REPORTING:

The Company has presented segment information in the Consolidated Financial Statement which is presented in the same financial report. Accordingly, in terms of paragraph 4 of Ind AS 108 - Operating Segments, no disclosure related to segments are presented in this standalone financial statement.

During the year ended March 31, 2023, the Company has provided allowance for expected credit loss on advance for purchase of non-current investment in Joint Venture viz: Astral Pipes Ltd, Kenya amounting f 15 Million (Previous Year: f 19 Million), which has been disclosed as exceptional item.

(b) During the year ended March 31, 2022, erstwhile Resinova Chemie Limited, one of the amalgamating Company had fire at storage section of factory premises, damaging Inventories and Property, Plant and Equipment (PPE). As per the best estimate of the management, the Company had recognised insurance claim receivable amounting to f 102 Million to the extent of corresponding loss of inventories and PPE amounting to f 102 Million which were charged off in profit and loss statement under the head ''Exceptional Items''. During the current year, the claim has been settled and amount of f 18 Million has been charged off in profit and loss statement under the head ''Exceptional Items''.

44. TRANSACTIONS WITH STRUCK OFF COMPANIES

There are no transactions with struck of companies during the year ended March 31, 2023 and March 31, 2022.

45. No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other persons or entities, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Company (Ultimate Beneficiaries). Further, No funds have been received by the Company from any parties (Funding Parties) with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

46. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors, in its meeting held on May 15, 2023, has proposed a final dividend of f 2.25 per equity share for the financial year ended March 31, 2023. The proposal is subject to the approval of shareholders at the Annual General Meeting and if approved would result in a cash outflow of approximately f 604 Million.

47. The figures for the previous year have been regrouped/reclassified wherever necessary to confirm with the current year''s classification and are not comparable.


Mar 31, 2022

The Company has obtained independent valuation for its investment properties at ''2,591.31 Lakhs as on 31st March 2022 and '' 1,946.90 as on March 31,2021. These valuations are based on valuations performed by K.S. Agrawal Associates, an accredited independent valuer. K.S. Agrawal Associates is a specialist in valuing these types of investment properties and reviewed the fair valuation based on best evidence of fair value determined using replacement cost of an asset of equivalent utility, depreciation and obsolescence. Fair market value is the amount expressed in terms of money that may reasonably be expected to be exchanged between a willing buyer and a willing seller, with equity or both. The valuation by the valuer assumes that Company shall continue to operate and run the assets to have economic utility. The fair value is on ''as is where is'' basis.

There are no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements thereof and there are no restriction on remittance of income and proceeds of disposal.

The investment properties which are leasehold properties, realisability of the same is subject to the terms and conditions under the respective lease agreements.

The Company''s Investment Properties are given on cancellable lease for a period 0-10 years.

Trade receivables are usually non-interest bearing and are on trade terms of 0 - 60 days.

The Company applies the expected credit loss (ECL) model for measurement and recognition of impairment loss on trade receivables. The Company tracks changes in expected credit loss on trade receivables based on overdue outstanding exposure, expected default rate and basis exposure is secured/unsecured. ECL impairment loss allowance (or reversal) recognised during the year is recognised in the Statement of Profit and Loss.

Terms and rights attached to equity shares

The Company has one class of equity shares having a par value of '' 5/- 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 the case of interim dividend. In the event of liquidation, the equity Shareholders are eligible to receive the remaining assets of the Company in proportion of their shareholding.

Long Term Benefit Long service award

Payable to the eligible employees as retention earned leave, after completion of service of five years, which can be en-cashed or accumulated till retirement. During the year an amount of ''146.01 lakhs (Previous Year: '' 121.89 lakhs) has been charged to the Statement of Profit and Loss towards the said benefit.

Defined benefit plans Gratuity

The employees'' gratuity fund scheme, which is a defined benefit plan, is managed by a trust with effect from 2019 is being maintained by Sheela Foam Employees gratuity trust. Under the gratuity plan, every employee who has completed atleast five years of service gets a gratuity on departure on 15 days of last drawn salary for each completed year of service. 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. This plan is governed by the Payment of Gratuity Act 1972, which requires that each employee who has completed 5 years of service shall be entitled to gratuity which is equal to salary of 15 days for each completed year of service.

i. The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

ii. I nformation given for retirement age is based on India''s standard mortality table with modification to reflect expected changes in mortality/ others.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss, Other Comprehensive Income and the funded status and amounts recognised in the Balance Sheet for the gratuity plan. The present value of the defined benefit obligation and the related current service cost are measured using the Projected Unit Credit Method with actuarial valuations being carried out at each balance sheet date.

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end for trade payable/receivable are unsecured and interest free and loan balances carry interest, further settlements occurs in cash. For the year ended March 31, 2022, the Company has not recorded any impairment of receivables relating to amounts owed by related parties. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

b. Details of financial/Corporate guarantees given are as below:

i. Company has given a Corporate guarantee of AUD 20 million on April 09, 2021 towards term loan granted by Citi Bank, Australia for its subsidiary company Joyce Foam Pty Ltd., Australia.

ii. Company has given financial guarantee of EURO 20 million on Sepetmber 25, 2019 towards term loan granted by Citi Bank, Spain for its subsidiary company International Foam Technologies SL, Spain.

iii. Company has given Corporate guarantee of INR 7000 lacs each on January 18, 2022 and January 19, 2022 towards term loan granted by Kotak Mahindra bank and JP Morgan Chase Banks respectively for its subsidiary company International Comfort Technologies Private Limited, India.

NOTE 45 : DISCLOSURES AS PER IND AS 116 ''LEASES''

(A) Company as lessee

(i) The Company''s significant leasing arrangements are in respect of the following assets:

(a). The Company has lease of land and buildings for offices, warehouses and service centres. Right of Use Assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. The lease terms for leasehold buildings ranges between 3 years to 9 years.

NOTE 46 : FAIR VALUES OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES

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:

1. The Company has disclosed financial instruments such as trade receivables, cash and cash equivalents, other bank balances, trade payables, other financial assets and liabilities at carrying value because their carrying amounts are a reasonable approximation of the fair values due to their short-term nature.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to the account for the expected losses of these receivables.

NOTE 47 : FAIR VALUE HIERARCHY

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs that have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques that use inputs that have a significant effect on the recorded fair value that are not based on observable market data

NOTE 48 : FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company''s principal financial liabilities, comprise of deposits from dealers, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. Further, the Company has financial risk / exposure of financial guarantees given to the banks towards security against the loans taken by its subsidiaries, however, considering that there is no expected credit losses, there is no financial liability as at the yearend on this account. The Company''s principal financial assets include investments, loans, trade and other receivables, cash and cash equivalents and other bank balances that are derived directly from its operations

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. The Company is exposed to market risk, credit risk and liquidity risk.

The Company''s senior management oversees the management of these risks. The senior professionals working to manage the financial risks and the appropriate financial risk governance framework for the Company are accountable to the Board of Directors and Audit Committee. This process provides assurance to Company''s senior management that the Company''s financial risk-taking activities are governed by appropriate policies and procedures and that financial risk are identified, measured and managed in accordance with Company policies and Company risk objective.

The management reviews and agrees policies for managing each of these risks which are summarized as below:

a) Market risk

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

The sensitivity analysis in the following sections relate to the position as at 31 March 2022 and 31 March 2021.

The analyses exclude the impact of movements in market variables on; the carrying values of gratuity and other post-retirement obligations; provisions; and the non-financial assets and liabilities.

The sensitivity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2022 and March 31, 2021.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in foreign currency). The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies. The Company is exposed to foreign currencies such as "USD", "AED", "AUD", "GBP" and "Euro".

Foreign currency sensitivity analysis

The Company is mainly exposed to USD, EURO, GBP and AUD . The following table demonstrate the sensitivity to a reasonably possible change in respective exchange rates, with all other variables held constant.

The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for sensitivity change in foreign currency rates. A positive number below indicates an increase in profit or equity and vice-versa.

(ii) interest risk

Interest rate is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Company''s financial liabilities comprises mainly of interest-bearing deposits with dealers, however, these are not exposed to risk of fluctuation in market interest rate as the rates are fixed at the time of contract/agreement and do not change for any market fluctuation.

(iii) Commodity price risk

The Company is affected by the price volatility of certain commodities. Its operating activities require the ongoing manufacture of bedding articles, home comfort products, furniture cushioning and specialized foam and therefore require a continuous supply of raw materials i.e. TDI and Polyol being the major input used in the manufacturing. Due to the significantly increased volatility of the price of the TDI and Polyol, the Company has entered into

various purchase contracts for these material for which there is an active market. The Company''s management has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The Company partly mitigated the risk of price volatility by entering into the contract for the purchase of these material and further the Company increases prices of its products as and when appropriate to minimize the impact of increase in raw material prices.

b) Credit risk

Credit Risk is the risk that the counter party will not meet its obligation under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.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 counterparties, taking into account their financial position, past experience and other factors.

(i) Trade receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating review and individual credit limits are defined in accordance with this assessment. The Company regularly monitors its outstanding customer receivables.

An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made in bank deposits, bonds, debentures and mutual funds. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counter party''s potential failure to make payments.

The Company''s maximum exposure to credit risk for the components of the balance sheet at March 31, 2022 and March 31, 2021 is the carrying amounts which are given below. Trade Receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company.

(c) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. The Company''s objective is to at all times maintain optimum levels of liquidity to meet its cash and liquidity requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate source of financing through the use of short-term bank deposits, short term investments and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be very low

NOTE 49: CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximize the shareholder value and to ensure the Company''s ability to continue as a going concern.

The Company has not distributed any dividend to its shareholders. The Company monitors gearing ratio i.e. total debt in proportion to its overall financing structure, i.e. equity and debt. There is no debt in the company. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2022, 31 March 2021 and 1 April 2020.

Non-current operating assets

The Company has common non-current operating assets for domestic as well as overseas market. Hence, separate figures for these assets are not required to be furnished.

NOTE 54 : TRANSFER PRICING

The Company has appointed an independent consultant for conducting a Transfer Pricing Study to determine whether the transactions with associate enterprises undertaken during the financial year are on an "arm''s length basis". The Transfer Pricing study under the Income Tax Act, 1961 in respect of transaction with the group companies for the financial year ended March 31,2022 is not yet complete. Adjustments, if any, arising from Transfer Pricing study shall be accounted for as and when the study is completed. The management confirms that all international transactions with associate enterprises are undertaken at negotiated contracted prices on usual commercial terms. During the current year, the Tranfer Pricing certificate under section 92E of Income Tax Act, 1961 for the year ended March 31, 2021 has been obtained and there are no adverse comments requiring adjustments.

The Information has been given in respect of such suppliers to the extant they could be identified as "Micro and Small" enterprises on the basis of information available with the Company. Further, the amount payable to these parties is not overdue hence no interest is required to provided/accrued as at March 31,2022 and March 31,2021

II The credit period for purchase of goods and services are normally up to 30 days. No interest is chargeable on trade payables.

NOTE 59 : THE CODE ON SOCIAL SECURITY 2020

The Code on Social Security 2020 (''the Code'') relating to employee benefits, during the employment and postemployment, has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet issued.

The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

NOTE 61:

(i) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries"

(ii) 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

NOTE 62 : EVENTS AFTER THE REPORTING PERIOD

There are no significant adjusting events after the reporting period.

NOTE 63 : DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The company has not traded or invested in Crypto currency or Virtual currency during the financial year.

NOTE 64 : UNDISCLOSED INCOME

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

NOTE 65: DETAILS OF BENAMI PROPERTY HELD

The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

NOTE 66: RELATIONSHIP WITH STRUCK OFF COMPANIES UNDER SECTION 248 OF THE COMPANIES ACT, 2013 OR SECTION 560 OF COMPANIES ACT, 1956

The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.


Mar 31, 2021

Aggregate carrying value of unquoted investments is ? 3,335 Million as at March 31, 2021 (as at March 31, 2020 : ? 3,386 Million).

Aggregate carrying value of quoted investments is ? Nil as at March 31, 2021 (as at March 31, 2020 : ? 2 Million).

Aggregate amount of diminution in value of investments is ? 194 Million as at March 31, 2021 (as at March 31, 2020 : ? 143 Million).

The Company has, jointly with Resinova Chemie Limited, promoted section 8 company, i.e Astral Foundation, under the Companies Act, 2013 for the purpose of carrying out CSR activities.

The company offers credit period up to 180 days.

Before accepting any new customer, the Company assesses the potential customer''s creditability and defines credit limits for each customer. Such limits are reviewed annually.

In determining the allowances for doubtful trade receivables, the Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix takes into account historical credit loss experience and is adjusted for forward looking information. The expected credit loss allowance is based on the ageing of the receivables that are due and rates used in the provision matrix.

Rights, preferences and restrictions attached to shares :

The Company has issued only one class of equity shares having value of ? 1/- per Share. Each holder of equity shares is entitled to one vote per share and are entitled to dividend as and when declared. All shares rank equally with regard to the Company''s residual assets after distribution of all preferential amounts.

Stock options granted under the Employee Stock Options scheme :

Details of the Employee stock option plan of the company :

Astral Limited (formerly known as Astral Poly Technik Limited) (the Company) formulated Employees Stock Option Scheme viz. Astral Employee Stock Option Scheme 2015 ("the Scheme") for the benefit of employees of the Company. Shareholders of the Company approved the Scheme by passing special resolution through postal ballot dated October 21, 2015 and was further amended vide shareholders resolution passed in the Annual General Meeting held on August 21, 2020. Under the said Scheme, Nomination and Remuneration Committee is empowered to grant stock options to eligible employees of the Company, up to 150,000 (Ex-bonus) Minimum vesting period of stock option is one year and exercise period of stock option is one year from the date of vesting. The Committee granted 16,282 stock options on November 14, 2015, 21,600 stock options on March 30, 2017, 22,400 stock options on November 13, 2017, 7,450 stock options on June 29, 2019, 9,310 stock options on October 24, 2019 and 12,413 stock options on August 4, 2020 totaling 91,315 stock options till date. Each stock option is exercisable into one equity share of face value of ? 1/- each.

The Company made bonus issue of shares in the ratio of 1:3 during the financial year. A fair and reasonable adjustment was made in respect of options unvested/yet to be exercised, options available for grant and their exercise price to give effect to the bonus in compliance with the SEBI (Share Based Employee Benefits) Regulations, 2015. Post Bonus issue adjustment the Exercise price of all stock options available for grant and options unvested/yet to be exercised arrives at ? 30/- share (Ex-bonus exercise price of all stock options was ? 40/- share). Each stock option is exercisable into one equity share of face value of ? 1/- each.

Further the Company is under process to obtain in principle approval from stock exchanges for additional 32,842 equity shares under Astral Employee Stock Option Scheme, 2015 pursuant to Bonus Issue of shares by the Company as approved by shareholders vide postal ballot resolution dated March 9, 2021.

Fair value of share options granted :

Fair value of the share options granted during the year is ? 903/- (previous financial year ? 1,013/- and ? 1,090/-respectively for options granted on June 29,2019 and October 24, 2019). The following assumptions were used for calculation of fair value of grants in accordance with Black Scholes model;

In November 2020, the dividend of ? 1/- per share (total dividend ? 151 Million) was paid to holders of fully paid equity shares.

During the year, the Company allotted 50,226,942 equity shares of ? 1/- each as fully paid up bonus shares by utilising securities premium amounting to ? 50 Million, pursuant to an ordinary resolution passed after taking the consent of shareholders through Postal ballot.

During the previous year, the Company allotted 30,132,441 equity shares of ? 1/- each as fully paid up bonus shares by utilising securities premium amounting to ? 30 Million, pursuant to an ordinary resolution passed after taking the consent of shareholders through Postal ballot.

During the pervious year, the Company has issued 723,200 equity shares of ? 1/- each fully paid up in exchange for the balance 49% of equity share of Rex Polyextrusion Private Limited upon amalgamation.

Nature and Purpose of reserve Capital reserve

The company has created capital reserve out of capital subsidies received from state Governments.

Securities premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium. This reserve is available for utilization in accordance with the provisions of the Companies Act, 2013. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium.

General reserve

General reserve is created from time to time by way of transfer of profits from retained earnings for appropriation purposes. General reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income. It can be used for distribution to equity shareholders only after complying with restriction contained in the Companies (Declaration and Payment of Dividend) Rules, 2014, as amended." Revaluation Reserve

The company has created revaluation reserve out of revaluation of land carried out during the year 2004-05." Stock Options Outstanding Account

Stock Option Outstanding Account is used to recognise grand date fair value options vested to employees under various equity settled schemes. The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to Stock Options Outstanding Account. 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.

Shares pending allotment

Shares pending allotment in previous year represents equity shares issued pursuant to business combination. (Note d)

Refer Note 39 for information about liquidity risk.

Amount stated in Current maturity is disclosed under the head of "Other Financial Liabilities (Current)" (Note 19). Term Loans are Secured by way of first charge, in respect of Property, plant and equipments , both present and future, and second charge on entire current assets of the Company both present and future. (Note 3,8,9). Rate of interest for Rupee Term Loan ranges from 6.5% to 10% p.a..

1 The Hongkong and Shanghai Banking Corporation Limited (HSBC) Term Loan of ? Nil (as at March 31, 2020 : ? 833 Million) repaid.

Buyers Credit : Rate of interest for Buyer''s Credit ranges from 0.40% to 3.00% p.a..

1 HDFC Bank Limited Buyers Credit of ? 57 Million (as at March 31, 2020: ? Nil) repayable by March 2022. Secured by way of first charge, in respect of entire current assets of the Company both present and future.

2 Standard Chartered Bank Buyers Credit of ? 67 Million (as at March 31, 2020: ? Nil) repayable by January 2022. Secured by way of first charge, in respect of entire current assets of the Company both present and future.

3 Kotak Mahindra Bank Limited Buyers Credit of ? 129 Million (as at March 31, 2020: ? 89 Million) repayable by September 2023.

4 Axis Bank Limited Buyers Credit of ? 11 Million (as at March 31, 2020: ? Nil) repayable by July 2022.

5 CITI Bank Buyers Credit of ? Nil (as at March 31, 2020: ? 118 Million) repaid.

6 Federal Bank Limited Buyers Credit of ? Nil (as at March 31, 2020: ? 26 Million) repaid.

7 The Hongkong and Shanghai Banking Corporation Limited (HSBC) Buyers Credit of ? Nil (as at March 31, 2020: ? 99 Million) repaid.

Vehicle Loans are Secured by way of hypothecation of respective motor vehicles purchased. Rate of interest for Vehicle loan ranges from 7 to 11% p.a.

1 Axis Bank Limited Vehicle Loan of ? 12 Million (as at March 31, 2020 : ? 15 Million) repayable on monthly basis. Repayable by May 2024.

2 ICICI Bank Limited Vehicle Loan of ? Nil (as at March 31, 2020 : ? 1 Million) repaid.

3 Daimler Financial Services India Pvt. Ltd. Vehicle Loan of ? Nil (as at March 31, 2020 : ? 2 Million) repaid.

1. EMPLOYEE BENEFITS:

Post-employment Benefit Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognised under "Contribution to Provident and Other funds" in Note 27 ? 32 Million (Previous Year: ? 28 Million).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to insurance service providers who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

The defined benefit plans typically expose to the Company to various risk such as;

Interest rate risk: A fall in the discount rate which is linked to the Government Securities. Rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan is having a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very low as insurance companies have to follow stringent regulatory guidelines which mitigate risk.

5. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE:

The gross amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year as per the provision of section 135 of the Companies Act, 2013 amounts to ? 45 Million (Previous year : ? 37 Million). The revenue expenditure charged to the Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year is ? 45 Million (Previous year : ? 38 Million) and has been paid.

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

, The amounts outstanding are unsecured and will be settled in cash. No expense has been recognised in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.

Transactions/balances during and end of the year/previous year are stated without considering impact of fair valuation carried out as per Ind AS.

S. ACQUISITION OF WATER TANK BUSINESS:

In line with the framework agreement entered by the Company with M/s Shree Prabhu Petrochemicals Pvt Ltd. and other parties entered in November 2020, the Company has purchased property, plant, equipment, brand (intangible asset) and inventory of water tank business of M/s Shree Prabhu Petrochemicals Pvt Ltd. and other parties for a total consideration of approx. ? 436 million, which has been paid in cash. Such purchased assets (fair valued) are accounted in line with Purchase Price Allocation method as required under Ind AS 103, Business Combination.

Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 15 and 19 off set by cash and bank balances) and total equity of the Company.

The company''s risk management committee reviews the risk capital structure of the company. As part of this review the company considers the cost of capital and the risk associated with each class of capital.

Gearing ratio

Financial risk management objectives

The Company''s financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other financial assets.

The Company''s business activities are exposed to a variety of financial risks, namely market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework who are responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A MANAGEMENT OF MARKET RISK

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- interest rate risk

i Currency risk

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk.

The carrying amounts of the Company''s foreign currency dominated monetary assets and monetary liabilities at the end of the reporting period are as follows:

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD,EUR and GBP.

The following table details, Company''s sensitivity to a 5% increase and decrease in the rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there would be a comparable impact on the profit and equity, and the balances below would be negative.

Interest rate risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligation with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

MANAGEMENT OF CREDIT RISK

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 9 - Trade receivable).

"The company is exposed to credit risk in relation to financial guarantees given to banks in respect of borrowingsobtainedbythesubsidiarycompanyandjointventure.IncaseofjointVenture,theCompany''s share is 50% and the guarantee has been given jointly and severally by all the partners of Joint Venture. The Company''s maximum exposure in this respect is of ? 123 Million as at March 31, 2021 (as at March 31, 2020 : ? 420 Million) as disclosed in contingent liabilities (Note 33)."

MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

). LEASE:

Company as a lessee

The Company''s lease asset classes primarily consist of leases for Tangible assets. The company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether: (1) the contract involves the use of an identified asset (2) the company has substantially all of the economic benefits from use of the asset through the period of the lease and (3) the company has the right to direct the use of the asset.

. SEGMENT REPORTING:

The company has presented segment information in the Consolidated Financial Statement which is presented in the same financial report. Accordingly, in terms of paragraph 4 of Ind AS 108 - Operating Segments, no disclosure related to segments are presented in this standalone financial statement.

. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors, in its meeting held on May 18, 2021, has proposed a final dividend of ? 1 per equity share for the financial year ended March 31, 2021. The proposal is subject to the approval of shareholders at the Annual General Meeting and if approved would result in a cash outflow of approximately ? 201 Million.

. ESTIMATION OF UNCERTAINTY RELATING TO THE GLOBAL HEALTH PANDEMIC COVID-19:

The Company continues to adopt measures to curb the impact of COVID-19 pandemic in order to protect the health of its employees and ensure business continuity with minimal disruption including remote working, maintaining social distancing, sanitization of workspaces etc. The Company has considered the impact of COVID-19 pandemic on its business operations and financial results based on its review of current indicators of future economic conditions and expects that the carrying amount of the assets will be recovered. However, the impact assessment of this pandemic is a continuing process given the uncertainties associated with its nature and duration. Accordingly, the Company will continue to monitor any material changes to future economic conditions.

. The figures for the previous year have been regrouped/ reclassified wherever necessary to confirm with the current year''s classification.


Mar 31, 2019

An asset is treated as current when it is:

1. Expected to be realized or intended to be sold or consumed in normal operating cycle;

2. Held primarily for the purpose of trading;

3. Expected to be realized within twelve months after the reporting period, or

4. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

1. It is expected to be settled in normal operating cycle;

2. It is held primarily for the purpose of trading;

3. It is due to be settled within twelve months after the reporting period, or

4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

u) Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing as material adjustment to the carrying amounts of assets and liabilities within next financial year.

i. Useful lives of property, plant and equipment and intangible assets

As described in Note 2(g), the Company reviews the estimated useful lives and residual values, if any, of property, plant and equipment and intangible assets at the end of each reporting period. During the current financial year, the management determined that there were no changes to the useful lives and residual values of the property plant and equipment and intangible assets.

ii. Impairment of Investment in Subsidiaries and Joint Venture

The investment in subsidiaries and joint venture are tested for impairment in accordance with provisions applicable to impairment of non-financial assets. The determination of recoverable amounts of the Company''s investments in subsidiaries and involves significant judgments. Market related information and estimates are used to determine the recoverable amount. Key assumptions on which management has based its determination of recoverable amount includes weighted average cost of capital and estimated operating margins.

Basis the above determination of recoverable amount, the management has concluded that there is no impairment in investments of subsidiaries and joint venture.

iii. Impairment of goodwill

With respect to the Goodwill of RS,1,921.98 Lacs, the recoverable amount of cash generating units (CGU) has been determined based on value in use calculations. Recoverable amounts for these CGUs has been determined based on value in use for which cash flow forecasts of the related CGU and discount rate ranging from 12.5% to 15% has been applied. The values assigned to the assumption reflect past experience and are consistent with the management''s plans for focusing operations in these markets. The management believes that the planned market share growth is reasonably achievable.

An analysis of the sensitivity of the computation to a change in key parameters (operating margin, discount rate and growth rate), based on a reasonable assumptions, did not identify any probable scenario in which the recoverable amount of the CGU would decrease below its carrying amount.

iv. Fair valuation of Intangible assets on acquisition (refer note 38)

a) Rights, preferences and restrictions attached to shares :

The Company has issued only one class of equity shares having value of RS,1 per Share. Each holder of equity shares is entitled to one vote per share and are entitled to dividend as and when declared. All shares rank equally with regard to the Company''s residual assets after distribution of all preferential amounts.

e) Stock options granted under the Employee Stock Options scheme :

1 Details of the Employee stock option plan of the company :

Astral Poly Technik Limited (the Company) formulated Employees Stock Option Scheme viz. Astral Employee Stock Option Scheme 2015 ("the Scheme") for the benefit of employees of the Company. Shareholders of the Company approved the Scheme by passing special resolution through postal ballot dated October 21, 2015. Under the said Scheme as approved by the Shareholders, Nomination and Remuneration Committee is empowered to grant stock options to eligible employees of the Company, up to 1,50,000 over a period of five years from the date of passing of resolution by shareholders. Minimum vesting period of stock option is one year and exercise period of stock option is one year from the date of vesting.

The Committee granted 16,282 stock options on November 14, 2015, 21,600 stock options on MarcRs,30, 2017, 22,400 stock options on November 13, 2017 totaling 60,282 stock options till date. Exercise price of all stock options were RS,50/- share. Each stock option is exercisable into one equity share of face value of RS,1/- each.

The following stock based payment arrangement were in existence during the current and prior year

Notes

a In August 2018 and November 2018, the dividend of H 0.35 per share (total dividend RS,505.43 Lacs) and H 0.30 per share (total dividend RS,433.23 Lacs) was paid to holders of fully paid equity shares. The total dividend includes dividend distribution tax at applicable rates. b Nature and Purpose of reserve Capital reserve

The company has created capital reserve out of capital subsidies received from state Governments.

Securities premium

The amount received in excess of face value of the equity shares is recognized in Securities Premium. This reserve is available for utilization in accordance with the provisions of the Companies Act, 2013. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium. General reserve

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

Revaluation Reserve

The company has created revaluation reserve out of revaluation of land carried out during the year 2004-05.

Stock Options Outstanding Account

The fair value of the equity-settled share based payment transactions with employees is recognized in Statement of Profit and Loss with corresponding credit to Stock Options Outstanding Account.

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.

Shares pending allotment

Shares pending allotment represents equity shares to be issued pursuant to business combination. (Note 38)

Note

a) Refer Note 39 for information about liquidity risk.

b) Amount stated in Current maturity is disclosed under the head of "Other Financial Liabilities (Current)" (Note 19).

c) Term Loans are Secured by way of first charge, in respect of Fixed assets, both present and future, and second charge on entire current assets of the Company both present and future. (Note 3,9,10). Rate of interest for Rupee Term Loan ranges from 7 to 10%. Rate of interest for ECB and Foreign currency Term Loan ranges from 3 to 4%.

1 HSBC Bank Term Loan of RS,13,842.11 Lacs (as at MarcRs,31, 2018 : RS,5,368.42 Lacs) repayable within 66 months (i.e. by February 2024) including initial moratorium period of Nine months from the date of first disbursement in Nineteen quarterly instalments.

2 Corporation Bank Term Loan of H917.71 Lacs (as at MarcRs,31, 2018 : RS,2,144.11 Lacs) repayable within 72 months (i.e. by July 2020) including initial moratorium period of twelve months from the date of first disbursement in twenty quarterly equal instalments.

3 IndusInd Bank Term Loan of H Nil (as at MarcRs,31, 2018 : RS,162.95 Lacs) repaid.

4 HSBC ECB Loan of US $ 10.59 Lacs equivalent RS,732.27 Lacs (as at MarcRs,31, 2018: US $ 31.76 Lacs equivalent RS,2,070.43 Lacs) repayable within 60 months (i.e. by August 2019) including initial moratorium period of twelve months from the date of first disbursement in sixteen quarterly instalments.

d) Buyers Credit : Rate of interest for Buyer''s Credit ranges from 0.50% to 1.5%.

1 HSBC Buyers Credit of RS,557.61 Lacs (as at MarcRs,31, 2018: H Nil) repayable by October 2021. Secured by way of first charge, in respect of entire current assets of the Company both present and future.

2 RBL Bank Buyers Credit of H Nil (as at MarcRs,31, 2018: RS,483.90 Lacs) Repaid.

3 Kotak Buyers Credit of RS,107.79 (as at MarcRs,31, 2018:H Nil) repayable by April 2019.

4 Federal Buyers Credit of H631.54 (as at MarcRs,31, 2018:H Nil) repayable by January 2022.

5 Indusind Bank Buyers Credit of H Nil (as at MarcRs,31, 2018 RS,1,099.03 Lacs) ,repaid by October 2018. Secured by way of first charge, in respect of entire current assets of the Company both present and future.

e) Vehicle Loans are Secured by way of hypothecation of respective motor vehicles purchased. Rate of interest for Vehicle loan ranges from 8 to 11%.

1 ICICI Bank Limited Vehicle Loan of RS,114.60 Lacs (as at MarcRs,31, 2018 : RS,226.44 Lacs) repayable on monthly basis. Repayable by November 2020.

2 Corporation Bank Vehicle Loan of H Nil (as at MarcRs,31, 2018 : RS,2.00 Lacs) repayable on monthly basis. Repaid by February

2019.

3 Axis Bank Limited Vehicle Loan of RS,206.76 Lacs (as at MarcRs,31, 2018 : RS, Nil) repayable on monthly basis. Repayable by January 2024.

4 Daimler Financial Services India Pvt. Ltd. Vehicle Loan of RS,26.98 Lacs (as at MarcRs,31, 2018 : H Nil) repayable on monthly basis. Repayable by June 2021.

f) Working capital loan are secured by way of first charge on entire current assets of the Company both present and future and second charge on movable and immovable fixed assets of the company.

There are numerous interpretative issues relating to the Supreme Court (SC) judgment on PF dated February 28, 2019. The company believes that the impact will not be material. The company will make necessary adjustments on receiving further clarity on the subject.

*Future cash outflows in respect of the above matters are determined only on receipt of judgments / decisions pending at various forums / authorities.

5 EMPLOYEE BENEFITS:

Post-employment Benefit

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note 27 RS,209.09 Lacs (Previous Year: RS,147.99 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognized in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

The current service cost and the net interest expenses for the year are included in the Employee benefits expense line item in the Statement of Profit and Loss. The remeasurement of the net defined benefit liability/ asset is included in Other Comprehensive Income.

e) Investment details of plan assets:

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

g) Sensitivity analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognized in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of RS,271.41 Lacs (as at MarcRs,31, 2018 : RS,84.61 Lacs) to the defined benefit plans during the next financial year.

* For amalgamating company : 2% at all ages

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

6 CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE:

The gross amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year as per the provision of section 135 of the Companies Act, 2013 amounts to RS,296.66 Lacs (Previous year : RS,236.47 Lacs). The revenue expenditure charged to the Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year is RS,220.00 Lacs (Previous year : RS,241.81 Lacs) and has been paid.

Notes :

1. There are no advances which are in the nature of loans.

2. The Company has issued corporate guarantees for the loans and credit facility arrangements in respect of subsidiary and joint venture.

3. The outstanding amount for the loan is including interest receivable.

37 RELATED PARTY DISCLOSURES:

1. Name of the related parties and their relationships Sr.

,, Description of Relationship Name of Related Parties

No.

a. Subsidiaries Astral Biochem Private Limited

Resinova Chemie Limited

Seal IT Services Limited, UK

Seal IT Services Inc, USA (Step-down subsidiary)

b. Enterprises over which Key Managerial Personal are able to Kairav Chemicals Limited exercise significant influence Saumya Polymers LLP

Astral Charitable Trust Kairamya Journeys LLP

c. Joint Venture Astral Pipes Limited

d. Key Managerial Personnel Sandeep Engineer (Managing Director)

Jagruti Engineer (Whole Time Director)

K.R. Shenoy (Independent Director)

Pradip N. Desai (Independent Director)

Narasinh K. Balgi (Independent Director)

Kaushal Nakrani (Independent Director)

Anil Kumar Jani (Non-Executive Director)

Kyle Thompson (Non-Executive Director)

Hiranand Savlani (Chief Financial Officer)

Krunal Bhatt (Company Secretary)

e. Relatives of Key Managerial Personnel Sandeep Engineer HUF

Kairav Engineer Saumya Engineer

The remuneration of key management personnel is determined by the remuneration committee. The same excludes gratuity as it is not determinable.

b. The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

c. The amounts outstanding are unsecured and will be settled in cash. No expense has been recognized in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.

d. Transactions/balances during and end of the year/previous year are stated without considering impact of fair valuation carried out as per Ind AS.

7 ACQUISITION AND MERGER OF REX POLYEXTRUSION PRIVATE LIMITED

On July 9, 2018, the company acquired 51% of equity share of Rex Polyextrusion Private Limited ("Rex"), engaged in the business of Manufacturing and supply of corrugated and other plastic piping solutions, against a consideration of RS,7,522.50 lacs paid in cash. Further, the Board has also approved the scheme of amalgamation of Rex with the Company for which the Company have issued 7,23,200 equity shares of RS,1 each fully paid up in exchange for the balance 49% of equity share of Rex. Such scheme was approved by NCLT, Ahmedabad Bench on May 2, 2019 and filed with the Registrar of Companies on May 9, 2019. The management has determined this as a subsequent adjusting event and hence, Rex has been amalgamated with effect from appointed date of July 10, 2018.

Assets acquired and Liabilities assumed on acquisition date

The fair values of the identifiable assets and liabilities of Rex Polyextrusion Private Limited as at the date of acquisition were:

* Intangible assets, which represents Brands (including trademarks and technical know-how) on the date of acquisition, has been initially recognized at its fair value, which has been determined considering the expected growth rate, discount rate and royalty rate. The values assigned to such assumptions, which involves significant judgements, are consistent with the management''s plans for focusing operations relating to the acquired Brands.

The deferred tax liability mainly comprises the tax effect of the accelerated depreciation for tax purposes of tangible and intangible assets. The goodwill of RS,1,921.98 lacs comprises the value of expected synergies arising from the acquisition.

Transaction costs of RS,195.08 lacs have been expensed and are included in other expenses.

8 FINANCIAL INSTRUMENTS

1 Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximizing the return to stakeholders through optimization of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 15 and 19 off set by cash and bank balances) and total equity of the Company.

The company''s risk management committee reviews the risk capital structure of the company on semiannual basis. As part of this review the company considers the cost of capital and the risk associated with each class of capital.

3 Financial risk management objectives

The Company''s financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company''s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other financial assets.

The Company''s business activities are exposed to a variety of financial risks, namely market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework who are responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A MANAGEMENT OF MARKET RISK

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- interest rate risk

i Currency risk

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk.

Derivative instruments:

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

9 FINANCIAL INSTRUMENTS (CONTD..)

Interest rate swaps to hedge against fluctuations in interest rate changes: As at MarcRs,31, 2019 : No. of contracts - 1 (as at MarcRs,31, 2018 : No. of contracts - 1 ).

The line items in the balance sheet that includes the above hedging instruments are "other financial assets" and "other financial liabilities".

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD,EUR and GBP.

The following table details, Company''s sensitivity to a 5% increase and decrease in the rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there would be a comparable impact on the profit and equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and five years. The above sensitivity does not include the impact of foreign currency forward contracts and option contracts which largely mitigate the risk.

ii Interest rate risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligation with floating interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

10 FINANCIAL INSTRUMENTS (CONTD..)

B MANAGEMENT OF CREDIT RISK

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 10 - Trade receivable).

The company is exposed to credit risk in relation to financial guarantees given to banks in respect of borrowings obtained by the subsidiary company and joint venture. In case of joint Venture, the Company''s share is 50% and the guarantee has been given jointly and severally by all the partners of Joint Venture.

The Company''s maximum exposure in this respect is of Rs,7,631.03 lacs as at MarcRs,31, 2019 , RS,7,044.61 lacs as at MarcRs,31, 2018 as disclosed in contingent liabilities (Note 33).

C MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

11 SEGMENT REPORTING:

The company has presented segment information in the Consolidated Financial Statement which is presented in the same financial report. Accordingly in terms of paragrapRs,4 of Ind AS 108 - Operating Segments, no disclosure related to segments are presented in this standalone financial statement.

During the year ended MarcRs,31, 2019, the company has made provision for diminution on its investment in Joint Venture viz : Astral Pipes Ltd, Kenya amounting to RS,199.28 Lacs (Previous year : RS,296.25 Lacs), which has been disclosed as exceptional item.

12.RECENT ACCOUNTING PRONOUNCEMENT

The below amendments have also became effective for the company from financial year beginning April 1, 2018. However, the management has evaluated and determined that the adoption of these amendments will not have any material impact on the standalone financial statements since there are no such transactions or the company''s existing policies are aligned to these amendments:

1. Amendment to Ind AS 12 Income Taxes - regarding recognition of deferred tax assets on unrealised losses

2. Applying Appendix B of Ind AS 21 The Effects of Changes in Foreign Exchange Rates

3. Amendment to Ind AS 28 Investments in Associates and Joint Ventures

4. Amendment to Ind AS 40 Investment Property - regarding transfer of investment property

5. Amendment to Ind AS 112 Disclosure of Interests in Other Entities - regarding disclosure requirements Standards issued but not yet effective

Ind AS 116 - Leases

Ind AS 116 Leases was notified by MCA on 30 MarcRs,2019 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is effective for annual periods beginning on or after 1 April 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. Lessees will be required to separately recognize the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

The company intends to adopt these standards from 1 April 2019. As the company does not have any material leases, therefore the adoption of this standard is not likely to have a material impact in its Standalone Financial Statements.

13 EVENTS AFTER THE REPORTING PERIOD

The Board of Directors, in its meeting held on May 20, 2019, has proposed a final dividend of H 0.40 per equity share for the financial year ended MarcRs,31, 2019. The proposal is subject to the approval of shareholders at the Annual General Meeting and if approved would result in a cash outflow of approximately RS,581.22 Lacs, including dividend distribution tax.

14 The figures for the previous year have been regrouped/ reclassified wherever necessary to confirm with the current year''s classification. Moreover, due to merger, figures for the current year is not comparable with the previous year to that extent.


Mar 31, 2018

1. COMPANY OVERVIEW:-

The Company is a public company domiciled in India and is incorporated under the provision of Companies act applicable in India. Its shares are listed in two recognized stock exchange in India, Bombay Stock Exchange and National stock exchange. The company was established in 1996, with the aim to manufacture pro-India plumbing and drainage systems in the country. Astral Poly Technik is equipped with production facilities at Santej & Dholka (Gujarat), and Hosur (Tamil Nadu) to manufacture Plumbing systems, Drainage systems, Agriculture, Industrial and Electrical Conduit Pipes with all kinds of necessary fittings.

The financial statements were approved for issue by the board of directors on May 23, 2018.

a) Stock options granted under the Employee Stock Options scheme :

1 Details of the Employee stock option plan of the company

Astral Poly Technik Limited (the Company) formulated Employees Stock Option Scheme viz. Astral Employee Stock Option Scheme 2015 (“the Scheme”) for the benefit of employees of the Company. Shareholders of the Company approved the Scheme by passing special resolution through postal ballot dated October 21, 2015. Under the said Scheme as approved by the Shareholders, Nomination and Remuneration Committee is empowered to grant stock options to eligible employees of the Company, up to 1,50,000 over a period of five years from the date of passing of resolution by shareholders. Minimum vesting period of stock option is one year and exercise period of stock option is one year from the date of vesting.

The Committee granted 16,282 stock options on November 14, 2015, 21,600 stock options on March 30, 2017, 22,400 stock options on November 13, 2017 totalling 60,282 stock options till date. Exercise price of all stock options were Rs.50 per share. Each stock option is exercisable into one equity share of face value of Re. 1/- each.

The following stock based payment arrangement were in existence during the current and prior year

Notes :

(a) In August 2017 and November 2017, the dividend of Re. 0.30 per share (total dividend Rs.432.44 lacs) and Re. 0.25 per share (total dividend Rs.360.38 lacs) was paid to holders of fully paid equity shares. The total dividend includes dividend distribution tax at applicable rates.

(b) The Board of Directors, in its meeting held on May 23, 2018, have proposed a final dividend of Re.0.35 per share for the financial year ended March 31, 2018. The proposal is subject to the approval of shareholders at the Annual General Meeting and if approved would result in a cash outflow of approximately Rs.505.43 lacs, including dividend distribution tax.

(c) Nature and Purpose of reserve Capital reserve

The company has created capital reserve out of capital subsidies received from state Governments.

Securities premium reserve

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. This reserve is available for utilization in accordance with the provisions of the Companies Act, 2013. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium reserve.

General reserve

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

Revaluation Reserve

The company has created revaluation reserve out of revaluation of land carried out during the year 2004-05.

Stock Options Outstanding Account

The fair value of the equity-settled share based payment transactions with employees is recognised in Statement of Profit and Loss with corresponding credit to Stock Options Outstanding Account.

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) Term Loans are Secured by way of first charge, in respect of Fixed assets, both present and future, and second charge on entire current assets of the Company both present and future. (Note 3,9,10). Rate of interest for Rupee Term Loan ranges from 7 to 10%. Rate of interest for ECB and Foreign currency Term Loan ranges from 3 to 4%.

1 HSBC Bank Term Loan of Rs.5,368.42 Lacs (as at March 31, 2017 : Rs.5,052.62 Lacs) repayable within 66 months (i.e. by February 2022) including initial moratorium period of Nine months from the date of first disbursement in Nineteen quarterly instalments.

2 Corporation Bank Term Loan of Rs.2,144.11 Lacs (as at March 31, 2017 : Rs.3,781.36 Lacs) repayable within 72 months (i.e. by July 2020) including initial moratorium period of twelve months from the date of first disbursement in twenty quarterly equal instalments.

3 IndusInd Bank Term Loan of Rs.162.95 Lacs (as at March 31, 2017 : Rs.810.75 Lacs) repayable within 60 months (i.e. by June 2018) including initial moratorium period of Twelve months from the date of first disbursement in sixteen quarterly instalments.

4 HSBC ECB Loan of US $ 31.76 Lacs equivalent Rs.2,070.43 Lacs (as at March 31, 2017: US $ 52.94 Lacs equivalent Rs.3,433.75 Lacs) repayable within 60 months (i.e. by August 2019) including initial moratorium period of twelve months from the date of first disbursement in sixteen quarterly instalments.

(d) Buyers Credit : Rate of interest for Buyer’s Credit ranges from 0.25 to 3%.

1 Indusind Bank Buyers Credit of Rs.1,099.03 Lacs (Corporation Bank Buyers Credit of as at March 31, 2017: Rs.1,164.38 lacs Repayable by October 2019. Secured by way of first charge, in respect of entire current assets of the Company both present and future.

2 RBL Bank Buyers Credit of Rs.483.90 Lacs (as at March 31, 2017: Rs.263.91 Lacs) Repayable by July 2020.

(e) Vehicle Loans are Secured by way of hypothecation of respective motor vehicles purchased. Rate of interest for Vehicle loan ranges from 8 to 11%.

1 ICICI Bank Limited Vehicle Loan of Rs.226.44 Lacs (as at March 31, 2017 : Rs.202.58 Lacs) repayable on monthly basis. Repayable by November 2020.

2 Corporation Bank Vehicle Loan of Rs.2.00 Lacs (as at March 31, 2017 : Rs.3.99 Lacs) repayable on monthly basis. Repayable by February 2019.

3 Axis Bank Limited Vehicle Loan of ‘ Nil (as at March 31, 2017 : Rs.5.12 Lacs) repaid.

(f) Commercial papers are secured by way of first charge on entire current assets of the Company both present and future and second charge on movable and immovable fixed assets of the company.

Notes :

(a) Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditor.

(b) Refer Note 39 for information about credit risk, market risk and liquidity risk of Trade payables.

2. EMPLOYEE BENEFITS:

Post-employment Benefit

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under “Contribution to Provident and Other funds” in Note 28 Rs.147.99 Lacs (Previous Year: Rs.120.52 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

The current service cost and the net interest expenses for the year are included in the Employee benefits expense line item in the Statement of Profit and Loss. The remeasurement of the net defined benefit liability/ asset is included in Other Comprehensive Income.

(e) Investment details of plan assets:

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

(g) Sensitivity analysis:

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using “Projected Unit Credit” method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognised in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution of Rs.84.61 lacs (as at March 31, 201 7 : Rs.15.51 lacs) to the defined benefit plans during the next financial year.

(h) The principal assumptions used for the purpose of actuarial valuation were as follows :

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

3. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE:

The gross amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year as per the provision of section 135 of the Companies Act, 2013 amounts to Rs.236.47 Lacs (Previous year : Rs.200.30 Lacs). The revenue expenditure charged to the Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year is Rs.241.81 Lacs (Previous year : Rs.200.60 Lacs) and has been paid.

4. DISCLOSURES PURSUANT TO SECURITIES AND EXCHANGE BOARD OF INDIA (LISTING OBLIGATIONS AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2015 AND SECTION 186 OF THE COMPANIES ACT, 2013

Notes :

1. There are no advances which are in the nature of loans.

2. The Company has issued corporate guarantees for the loans and credit facility arrangements in respect of subsidiary and joint venture.

3. The outstanding amount for the loan is including interest receivable.

5. RELATED PARTY DISCLOSURES:

1. Name of the related parties and their relationships:

Notes :

a) Compensation of key management personnel :

The remuneration of key management personnel during the year was as follows:

The remuneration of key management personnel is determined by the remuneration committee. The same excludes gratuity as it is not determinable.

b) The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions.

c) The amounts outstanding are unsecured and will be settled in cash. No expense has been recognized in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.

d) Transactions/balances during and end of the year/previous year are stated without considering impact of fair valuation carried out as per Ind AS.

6. Financial instruments

1. Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 20 off set by cash and bank balances) and total equity of the Company.

The company’s risk management committee reviews the risk capital structure of the company on semi annual basis. As part of this review the company considers the cost of capital and the risk associated with each class of capital.

There have been no transfers amount in Level 1, Level 2 and Level 3 during the years ended March 31, 2018, March 31, 2017.

3. Financial risk management objectives

The Company’s financial liabilities comprise mainly of borrowings, trade payables and other financial liabilities. The Company’s financial assets comprise mainly of investments, cash and cash equivalents, other balances with banks, loans, trade receivables and other financial assets.

The Company’s business activities are exposed to a variety of financial risks, namely market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company’s senior management has the overall responsibility for establishing and governing the Company’s risk management framework who are responsible for developing and monitoring the Company’s risk management policies. The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A MANAGEMENT OF MARKET RISK

The Company’s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- interest rate risk

i Currency risk

The Company’s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk.

Derivative instruments:

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company’s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company’s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

The line items in the balance sheet that includes the above hedging instruments are “other financial assets” and “other financial liabilities”.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD,EUR and GBP.

The following table details,Company’s sensitivity to a 5% increase and decrease in the rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there would be a comparable impact on the profit and equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and five years. The above sensitivity does not include the impact of foreign currency forward contracts and option contracts which largely mitigate the risk.

ii Interest rate risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligation with floating interest rates.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

B MANAGEMENT OF CREDIT RISK

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company’s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 10 - Trade receivable).

The company is exposed to credit risk in relation to financial guarantees given to banks in respect of borrowings obtained by the subsidiary company and joint venture. In case of joint Venture, the Company’s share is 50% and the guarantee has been given jointly and severally by all the partners of Joint Venture. The Company’s maximum exposure in this respect is of Rs.7,044.62 lacs as at March 31, 2018, Rs.6,562.27 lacs as at March 31, 2017 as disclosed in contingent liabilities (Note 34).

C MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company’s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

7. SEGMENT REPORTING:

The company has presented segment information in the Consolidated Financial Statement which is presented in the same financial report. Accordingly in terms of paragraph 4 of Ind AS 108 - Operating Segments, no disclosure related to segments are presented in this standalone financial statement.

8. EXCEPTIONAL ITEM

During the year ended March 31, 2018, the company has made impairment provision on its investment in Joint Venture viz : Astral Pipes Ltd, Kenya amounting to Rs.296.25 lacs, which has been considered as exceptional Item.

9. RECENT ACCOUNTING PRONOUNCEMENT

Standards issued but not yet effective

On March 28, 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying amendments to Ind AS 115, ‘Revenue from Contracts with Customers’ and Ind AS 12, ‘Recognition of Deferred Tax Assets for Unrealized Losses’. The amendments are applicable from April 1, 2018.

Ind AS 115 Revenue from Contracts with Customers:

Ind AS 115 was notified on March 28, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This new standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. Ind AS 115 is effective for the Company in the first quarter of financial year 2018-19 using either one of two methods:

i) retrospectively to each prior reporting period presented in accordance with Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors, with the option to elect certain practical expedients as defined within Ind AS 115 (the full retrospective method); or

ii) retrospectively with the cumulative effect of initially applying Ind AS 115 recognized at the date of initial application (April 1, 2018) and providing certain additional disclosures as defined in Ind AS 115 (the modified retrospective method).

Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, related discounts & incentives and volume rebates given to customer and customers of the customers.

Amendments to Ind AS 12 Recognition of Deferred Tax Assets for Unrealised Losses:

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

The effect of this amendment on the financial statements of the Company is being evaluated.

10. Events after the reporting period

The board of directors at its Meeting held on May 23, 2018 has recommended a dividend of Re. 0.35 per equity share and if approved by the shareholders in the annual general meeting would result in a cash outflow of approximately Rs.505.43 lacs, including dividend distribution tax.

11. The figures for the previous year have been regrouped/ reclassified wherever necessary to confirm with the current year’s classification. The comparative financial information of the Company for the corresponding year ended March 31, 2017 were audited by the firm other than S R B C & CO LLP.


Mar 31, 2017

1. EMPLOYEE BENEFITS:

I. Post-employment Benefit Defined Contribution Plan:

The company makes provident fund (PF) contributions to defined contribution benefit plans for eligible employees. Under the scheme the company is required to contribute a specified percentage of the payroll costs to fund the benefits. The contributions specified under the law are paid to the government authorities (PF commissioner).

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note 28Rs,120.52 Lacs (Previous Year:Rs,102.40 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognized in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

The defined benefit plans typically expose the company to various risk such as;

Investment risk:

The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create plan deficit.

Interest risk:

A decrease in the bond interest rate will increase the plan liability; however, this will be partially offset by an increase in the plan assets.

Longevity risk:

The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan''s liability.

Salary risk:

The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using "Projected Unit Credit" method at the end of the reporting period which is the same as that applied in calculating the defined benefit obligation liability recognized in Balance Sheet.

There were no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

The Company expects to make a contribution ofRs,15.51 lacs (as at March 31, 2016 :Rs,7.07 lacs, as at April 1, 2015 :Rs,Nil) to the defined benefit plans during the next financial year.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

II. Other long term employee benefits :

Compensated absences

The liability towards compensated absences (leave encashment) for the year ended March 31, 2017 based on actuarial valuation carried out by using Projected Unit Credit Method resulted in increase in liability byRs,12.01 lacs ( As at March 31, 2016 :Rs,11.06 lacs).

2. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE:

The gross amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year as per the provision of section 135 of the Companies Act, 2013 amounts toRs,200.30 Lacs (Previous year :Rs,182.57 Lacs). The revenue expenditure charged to the Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year isRs,200.60 Lacs (Previous year :Rs,183.00 Lacs) and has been paid.

Note :

a. The amount outstanding are unsecured and will be settled in cash. No expense has been recognized in the current or prior years for bad or doubtful debts in respect of amounts owned by related parties.

* Balance outstanding at the end of the year/previous years are stated without considering impact of fair valuation carried out as per Ind AS.

3. SEGMENT REPORTING:

The company has presented segment information in the Consolidated Financial Statement which is presented in the same financial report. Accordingly in terms of paragraph 4 of Ind AS 108 - Operating Segments, no disclosure related to segments are presented in this standalone financial statement.

4. The Company has, on a preferential basis, issued 13,85,204 equity shares of Re. 1 each, fully paid up at a price ofRs,425.93 per share aggregating toRs,5,900.00 lacs to Mr. Vijay Parikh on November 2, 2015, in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

5. Exceptional item for the year ended March 31, 2016 representsRs,83.11 lacs paid by the Company towards the full and final settlement of employees dues in respect of Baddi plant.

6. Disclosure on Specified Bank Notes (SBNs)

The details of Specified Bank Notes (SBNs) held and transacted during the period from November 8, 2016 to December 30, 2016, is given below as required in terms of Ministry of Corporate Affairs notification no G.S.R 308(E) dated March 30, 2017:

* For the purpose of this clause, the term "Specified Bank notes" shall have the same meaning as provided in the notification of the Government of India, in the Ministry of Finance, Department of Economics Affairs number S.O. 3407 (E) dated the 8th November, 2016

7. Financial instruments

1. Capital management

The Company manages its capital to ensure that the Company will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance.

The capital structure of the Company consists of net debt (borrowings as detailed in notes 16 and 20 off set by cash and bank balances) and total equity of the Company.

The company''s risk management committee reviews the risk capital structure of the company on semi annual basis. As part of this review the company considers the cost of capital and the risk associated with each class of capital.

i Debt is defined as long-term borrowings, short-term borrowings and current maturities of long term borrowings (excluding financial guarantee contracts and contingent consideration), as described in notes 16 and 20.

The Company''s business activities are exposed to a variety of financial risks, namely market risk (including currency risk and interest rate risk), credit risk and liquidity risk.

The Company''s senior management has the overall responsibility for establishing and governing the Company''s risk management framework who are responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set and monitor appropriate risk limits and controls, periodically review the changes in market conditions and reflect the changes in the policy accordingly. The key risks and mitigating actions are also placed before the Audit Committee of the Company. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

A MANAGEMENT OF MARKET RISK

The Company''s size and operations result in it being exposed to the following market risks that arise from its use of financial instruments:

- currency risk;

- interest rate risk

i Currency risk management

The Company''s activities expose it primarily to the financial risk of changes in foreign currency exchange rates. The Company enters into a variety of derivative financial instruments to manage its exposure to foreign currency risk :

Derivative instruments:

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

Interest rate swaps to hedge against fluctuations in interest rate changes: As at March 31, 2017 : No. of contracts - 1 (as at March 31, 2016 : No. of contracts - 1 and as at April 1, 2015 : No. of contracts - 1).

The line items in the balance sheet that includes the above hedging instruments are "other financial assets" and "other financial liabilities.

Foreign currency sensitivity analysis

The Company is mainly exposed to the currency : USD,EUR and GBP.

The following table details, Company''s sensitivity to a 5% increase and decrease in the rupee against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding not hedged on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rate. A positive number below indicates an increase in the profit and equity where the rupee strengthens 5% against the relevant currency. For a 5% weakening of the rupee against the relevant currency, there would be a comparable impact on the profit and equity, and the balances below would be negative.

The Company, in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rate variations. The counter party is generally a bank. These contracts are for a period between one day and five years. The above sensitivity does not include the impact of foreign currency forward contracts and option contracts which largely mitigate the risk. i i Interest risk

Interest rate risk is the risk that the future cash flow with respect to interest payments on borrowing will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligation with floating interest rates.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment, showing a significantly higher volatility than in prior years.

B MANAGEMENT OF CREDIT RISK

Credit risk refers to the risk that a counter party will default on its contractual obligation resulting in financial loss to the Company. The Company uses its own trading records to evaluate the credit worthiness of its customers. The Company''s exposure are continuously monitored and the aggregate value of transactions concluded, are spread amongst approved counter parties (refer note 10 - Trade receivable).

The company is exposed to credit risk in relation to financial guarantees given to banks in respect of borrowings obtained by the subsidiary company and joint venture. In case of joint Venture, the Company''s share is 37.50% and the guarantee has been given jointly and severally by all the partners of Joint Venture.

The Company''s maximum exposure in this respect is of ''6,562.27 lacs as at March 31, 2017 ,Rs,3,678.68 lacs as at March 31, 2016 andRs,1,989.87 lacs as at April 1, 2015 as disclosed in contingent liabilities (Note 34).

C MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

The following table shows the maturity analysis of the Company''s financial liabilities based on contractually agreed undiscounted cash flows along with its carrying value as at the Balance Sheet date.

8. First-time Ind-AS adoption reconciliation

Transition to Ind As - Reconciliation

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

1. Reconciliation of Balance Sheet as at April 1, 2015 (Transition Date) and March 31, 2016

2. Reconciliation of Total Comprehensive Income for the year ended March 31, 2016

3. Reconciliation of Equity as at April 1, 2015 and as at March 31, 2016

4. Reconciliation of Profit for the year ended March 31, 2016

5. Adjustments to Statement of Cash flow

6. Notes on reconciliation

5. Adjustments to Statement of Cash flow

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended March 31, 2016 as compared with the previous GAAP.

6. Notes on Reconciliation

a. The Company has provided certain interest free loans to its subsidiary Company ''Astral Biochem Private Limited'', wholly owned subsidiary. As per Ind AS, interest free component provided by the company to subsidiary company is required to be considered as an additional cost of investment in the books of Company. Hence, value of investment has increased byRs,91.32 lacs as at March 31, 2016 and April 1, 2015.

As per Ind AS, interest free component is required to be fair valued as per Effective Interest Rate (EIR) method. Hence, interest ofRs,43.39 lacs charged by the Company is recognized as income and the amount is considered as an addition to the loan amount provided by holding Company to the subsidiary Company.

b. Under the previous GAAP, investments in equity instrument were classified as long term investments. Long term investments were carried at Cost less provision for other than temporary decline in the value of such investments. On transition to Ind AS, the Company has tested for diminution in value of its investment in Joint Venture in accordance with requirements of Ind AS, which entails discounting of the cash flows from its investment in joint venture. Consequently the resultant decline in value of the investment in joint venture have been recognized in retained earningsRs,676.83 lacs as at March 31, 2016 and April 1, 2015.

Under Ind AS, the components of compound financial instruments held in the joint venture by the Company are classified separately as loan and investment in accordance with the substance of the contractual arrangements. The conversion option classified as investment is determined by deducting the amount of loan component from the fair value of the compound financial instrument. The fair value of the loan component is estimated using the prevailing market interest rate for similar non-convertible instruments. The amount is recognized as a loan on an amortized cost basis using the effective interest rate method until extinguished at the instrument''s maturity date. Accordingly loan component ofRs,354.12 lacs have been deducted from the investment and classified as loan as at March 31, 2016 andRs,225.47 as at April 1, 2015. The net effect of these changes is a increase in total equity as at March 31, 2016 ofRs,49.36 lacs (increase in total equity as at April 1, 2015 ofRs,25.11 lacs) and increase in profit for the year ended March 31, 2016 ofRs,24.25 lacs.

c. Under previous GAAP, the mark to market losses on derivative financial instruments (other than forward contracts which were accounted as per AS-11 on "The Effects of Changes in Foreign Exchange Rates" as at April 1, 2015 and March 31, 2016) were recognized in the Statement of Profit and Loss and the net gains, if any, were not accounted for. Under Ind AS, all derivative financial instruments have been recognized at fair value and the movement is recognized in the Statement of Profit and Loss and Total Equity. The net effect of these changes is a decrease in total equity as at March 31, 2016 ofRs,89.16 lacs (decrease in total equity as at April 1, 2015 ofRs,19.72 lacs) and decrease in profit for the year ended March 31, 2016 ofRs,69.44 lacs.

d. Under previous GAAP, forward contracts were accounted as per AS-11 on "The Effects of Changes in Foreign Exchange Rates" as at April 1, 2015 and March 31, 2016. Under Ind AS, forward contracts have been recognized at fair value and the movement is recognized in the Statement of Profit and Loss and Total Equity. The net effect of these changes is a decrease in total equity as at March 31, 2016 ofRs,5.73 lacs (increase in total equity as at April 1, 2015 ofRs,5.37 lacs) and decrease in profit for the year ended March 31, 2016 ofRs,11.10 lacs.

e. Under previous GAAP, dividends on equity shares recommended by the board of directors after the end of the reporting period but before the financial statements were approved for issue were recognized in the financial statements as a liability. Under Ind AS, such dividends are recognized when approved by the shareholders in a general meeting. The effect of this change is an increase in total equity as at April 1, 2015 ofRs,319.57 lacs and reduction in provisions by similar amount.

f. Under previous GAAP, MAT credit entitlement was classified as Other non-current assets/Other current assets. Under Ind AS, MAT credit entitlement is considered as part of deferred tax component. Accordingly, MAT Credit entitlement ofRs,440.50 lacs andRs,478.00 lacs have been deducted from the Other non-current asset and Other current assets respectively andRs,918.50 lacs have been deducted from Deferred Tax Liabilities as at April 1, 2015.

g. Under Previous GAAP, revenue from sale of products was presented net of excise duty under revenue from operations. Whereas, under Ind As, revenue from sale of products includes excise duty. The corresponding excise duty expense amounting toRs,15,015.12 lacs is presented separately on the face of the Statement of Profit and loss for the year ended March 31, 2016. The change does not affect total equity as at March 31, 2016 and April 1, 2015, profit before tax or total profit for the year ended March 31, 2016.

Under previous GAAP, various schemes, discounts and incentives given to customers were included in ''Sales Promotion and Discount on sales'' expenses. Under Ind AS, the Company will recognize revenue at the fair value of consideration received or receivable. Hence, expenses ofRs,1,497.67 lacs is considered as reductions in selling price and reduced from the net revenue from operations.

h. Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains or losses are required to be presented in other comprehensive income.

i. Under previous GAAP, actuarial gains and losses were recognized in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which is recognized in other comprehensive income. Consequently, the tax effect of the same has also been recognized in other comprehensive income under Ind AS instead of profit or loss. The actuarial loss for the year ended March 31, 2016 wereRs,70.05 lacs and the tax effect thereonRs,19.77 lacs. This change does not affect total equity, but there is increase in profit before tax ofRs,70.05 lacs, and in total profit ofRs,50.28 lacs.

9. Recent accounting pronouncement

Standards issued but not yet effective

In March 2017, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS 7, ''Statement of Cash Flows'' and Ind AS 102, ''Share-based payment.'' These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB) to IAS 7, ''Statement of Cash Flows'' and IFRS 2, ''Share-based payment,'' respectively. The amendments are applicable from April 1, 2017.

Amendment to Ind AS 7:

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated. Amendment to Ind AS 102:

The amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash-settled awards and awards that include a net settlement feature in respect of withholding taxes.

It clarifies that the fair value of cash-settled awards is determined on a basis consistent with that used for equity-settled awards. Market-based performance conditions and non-vesting conditions are reflected in the ''fair values'', but non-market performance conditions and service vesting conditions are reflected in the estimate of the number of awards expected to vest. Also, the amendment clarifies that if the terms and conditions of a cash-settled share-based payment transaction are modified with the result that it becomes an equity-settled share-based payment transaction, the transaction is accounted for as such from the date of the modification. Further, the amendment requires the award that includes a net settlement feature in respect of withholding taxes to be treated as equity-settled in its entirety. The cash payment to the tax authority is treated as if it was part of an equity settlement.

The Company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.

10. Events after the reporting period

The board of directors at its Meeting held on May 30, 2017 has recommended a dividend of Re. 0.30 per equity share and if approved by the shareholders in the annual general meeting would result in a cash outflow of approximatelyRs,432.44 lacs, including dividend distribution tax.

11. Approval of Financial Statement

The financial statements were approved for issue by the board of directors on May 30, 2017.


Mar 31, 2016

1. EMPLOYEE BENEFITS

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

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note No. 22 Rs.103.82 Lacs (Previous Year: Rs.95.92 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

2. CORPORATE SOCIAL RESPONSIBILITY (CSR) EXPENDITURE

Amount required to be spent by the Company on Corporate Social Responsibility (CSR) activities during the year was Rs.182.57 Lacs. Revenue expenditure charged to Statement of Profit and Loss in respect of Corporate Social Responsibility (CSR) activities undertaken during the year is Rs.183.00 Lacs and has been paid in cash.

3. CHANGE IN ACCOUNTING POLICY

Effective April 01, 2015, the Company has changed its method for the valuation of its inventories, except for inventories of finished goods, from FIFO (First in First out) basis to weighted average basis due to the change in technology of the financial accounting system, the impact of the change is insignificant on the profit before tax of the Company for the year.

4. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

c) Interest rate swaps to hedge against fluctuations in interest rate changes: No. of contracts:! (Previous Year: No. of contracts : 1) Foreign Currency Exposures not hedged by derivative instruments as at 31st March, 2016 on payable amounting US$ 333.72 Lacs and EURO 18.65 Lacs Equivalent Rs.23,516.35 Lacs (Previous Year: US$ 391.36 Lacs and EURO 2.41 Lacs Equivalent Rs.24,621.86 Lacs) and on receivables amounting US$ 8.12 and GBP 5.71 Lacs Equivalent Rs.1,083.03 Lacs (Previous Year: US$ 2.50 and GBP 5.52 Lacs Equivalent Rs.665.89 Lacs).

Foreign Exchange Loss (Net) of Rs.1,693.21 Lacs (Previous Year: Exchange Loss (Net) of Rs.928.47 Lacs) for the year has been included in respective heads of Statement of Profit and Loss.

5. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such this is the only reportable business segment as per Accounting Standard on Segment Reporting (AS - 17) notified under the Companies (Accounting Standards) Rules, 2006.

6. The Company has, on a preferential basis, issued 13,85,204 equity shares of Rs.1 each, fully paid up at a price of Rs.425.93 per share aggregating to Rs.5,900.00 Lacs to Vijay Parikh on 2nd November, 2015, in accordance with the provisions of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009.

7. On 10th December 2014, the company allotted 59,84,519 Equity Shares of Rs.1 each for cash at a premium of Rs.401.52 per equity shares aggregating to Rs.24,088.89 Lacs, pursuant to shares issued under Qualified Institutional Placement (QIP). The company has utilized all the proceeds as per offer document, there is no unutilized fund as on 31st March 2015.

8. Exceptional item for the year ended March 31, 2016 represents Rs.83.11 Lacs paid by the Company towards the full and final settlement of employees dues in respect of Baddi plant.

9. Previous year''s figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2014

1. CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR (Rs. In Lacs)

As At As At 31st March, 2014 31st March, 2013

Contingent Liabilities

Bank Guarantees 296.08 298.22

Letters of Credit for Purchases 149.75 -

Income tax matters under appeal - 5.77

Guarantee Given by Company on behalf of Joint Venture 1,972.01 - for availing borrowing from local Bank Commitments

Capital Contracts remaining to be executed 1,363.84 1,182.31

2. EMPLOYEE BENEFITS

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

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note No. 21 Rs. 77.00 Lacs (Previous Year : Rs. 66.63 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (The Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

f) Assumptions :

e) Investment details of plan assets :

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

h) Contributions expected to be paid to the plan during the next financial year Rs. Nil (Previous Year : Rs. Nil).

3. RELATED PARTY DISCLOSURES

1. Name of Party and relationship :

Sr. No. Description of Relationship Name of Related Parties

a. Subsidiaries Astral Biochem Private Limited

Advanced Adhesives Limited

b. Enterprises over which Key Managerial Kairav Chemicals Limited Personnel are able to exercise significant Saumya Polymers LLP (Formerly known influence as Saumya Polymers Private Limited)

Joint Venture Astral Pipes Limited (Formerly known

as Astral Technologies Limited)

c. Key Management Personnel Mr. Sandeep P. Engineer

Mrs. Jagruti S. Engineer Mr. K. R. Shenoy

d. Relatives of Key Management Personnel Sandeep P. Engineer HUF

Mr. Bipin R. Mehta Mrs. Rekha B. Mehta Mrs. Hansa P. Engineer Mr. Kairav S. Engineer

4. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

5. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts and currency options to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts and Currency Options for speculative purposes.

6. Previous year''s figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2013

1. CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR

(Rs. In Lacs)

As At As At 31st March, 2013 31st March, 2012

Contingent Liabilities

Bank Guarantees 298.22 155.18

Letters of Credit for Purchases - 38.00

Income tax matters under appeal 5.77 772.53

Commitments

Capital Contracts remaining to be executed 1,182.31 840.82

2. EMPLOYEE BENEFITS

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

Defined Contribution Plan:

Amount towards Defined Contribution Plan have been recognized under "Contribution to Provident and Other funds" in Note No. 20 Rs. 66.63 Lacs (Previous Year Rs. 53.70 Lacs).

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (The Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

3. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

4. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company''s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company''s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss of subsequent accounting period aggregates to Rs.16.22 Lacs (Previous Year : Rs.51.65 Lacs).

Foreign Currency Exposures not hedged by derivative instruments as at 31st March, 2013 on payable amounting US$ 318.16 Lacs & EURO 9.47 Lacs Equivalent Rs.17,927.61 Lacs (Previous Year: US$ 399.45 Lacs & EURO 9.55 Lacs Equivalent Rs.20,972.25 Lacs) and on receivables amounting US$ 1.61 Lacs Equivalent Rs.87.33 Lacs (Previous Year: US$ 3.61 Lacs Equivalent Rs.183.46 Lacs).

Foreign Exchange Loss (Net) of Rs.1,277.37 Lacs (Previous Year: Exchange Loss (Net) of Rs.2,236.87 Lacs) for the year has been included in respective heads of Statement of Profit and Loss.

5. Previous year''s figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2012

A) The Company has issued only one class of shares referred to as equity shares having a par value of Rs.5/-. All equity shares carry one vote per share without restrictions and are entitled to dividend, as and when declared. All shares rank equally with regard to the Company's residual assets.

b) The Company has issued Nil (Previous Year : 19,67,108 Equity Shares) Bonus Shares during the period of 5 years immediately preceding the Balance Sheet date.

c) The amount of per share dividend recognised as distributions to equity shareholders during the year ended 31st March, 2012 is Rs.1.125 (Previous Year: Rs.1.125), subject to approval by shareholders in the ensuing Annual General Meeting.

a) Term Loans Secured by way of first charge, in respect of all the current asset, both present and future, of the Company and Fixed assets, both present and future, and further secured by personal guarantees of Directors.

i. Corporation Bank Term Loan of Rs. 2,477.13 Lacs (Previous Year : Rs. 2,469.30 Lacs) repayable within 72 months including initial moratorium period of twelve months from the date of first disbursement in twenty quarterly equal instalments. Repayable by February 2015.

ii. Standard Chartered Bank Term Loan of Rs.359.38 Lacs (Previous Year : Rs.646.88 Lacs) repayable within 60 months including initial moratorium period of twelve months from the date of first disbursement in sixteen quarterly equal instalments. Repayable by April 2013.

iii.HDFC Bank ECB Loan of Rs.3,561.60 Lacs (Previous Year : Rs. Nil) repayable within 66 months including initial moratorium period of twelve months from the date of first disbursement in eighteen quarterly instalments.

Repayable by December 2016. iv.Standard Chartered Bank ECB Loan of Rs.1,602.72 Lacs (Previous Year : Rs.892.00 Lacs) repayable within 60 months including initial moratorium period of twelve months from the date of first disbursement in nine half yearly instalments. Repayable by March 2013.

b) Vehicle Loans are Secured by way of hypothecation of respective motor vehicles purchased.

i. Kotak Mahindra Prime Limited Vehicle Loan of Rs.35.74 Lacs (Previous Year : Rs.58.98 Lacs) repayable on monthly basis. Repayable by April 2014.

ii. Axis Bank Limited Vehicle Loan of Rs.7.11 Lacs (Previous Year : Rs. Nil) repayable on monthly basis. Repayable by July 2014.

iii.Tata Motors Finance Limited Vehicle Loan of Rs.2.48 Lacs (Previous Year : Rs.4.51 Lacs) repayable on monthly basis. Repayable by April 2013.

* There are no dues to Micro and small Enterprises as at 31st March, 2012. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

a) Building Includes Rs.750/- being face value of 15 number of shares of Rs.50/- each held in Kant Apartment Co- Operative Housing Society Limited. Also includes Rs.127.11 Lacs (Previous Year : Rs.127.11 Lacs) for which the procedure for transfer of title in the name of the company is in process.

b) Accumulated Depreciation up to 31st March 2012 includes impairment loss on Plant and Equipment Rs.96.20 Lacs (Previous Year : Rs.96.20 Lacs)

* The Company is lessee under various operation leases under which rental expenses for the year was Rs.91.21 Lacs (Previous year : Rs.61.68 Lacs). The Company has not executed any non cancelable lease agreement.

1 CONTINGENT LIABILITIES AND COMMITMENTS NOT PROVIDED FOR

(Rs. In Lacs)

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

Contingent Liabilities

Bank Guarantees 155.18 109.96

Letters of Credit for Purchases 38.00 -

Income tax matters under appeal 772.53 77.79

Commitments

Capital Contracts remaining to be executed 840.82 808.57

2 EMPLOYEE BENEFITS

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

Defined Contribution Plan:

Contribution to Defined Contribution Plan, recognized and charged off the year, is as under: Employer's Contribution to Providend Fund Rs. 53.70 Lacs

Defined Benefit Plan:

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

e) Investment details of plan assets :

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & mortality rates are obtained from relevant data of Life Insurance Corporation of India.

h) Contributions expected to be paid to the plan during the next financial year Rs.Nil (Previous Year : Nil)

The Liability for Leave Encashment and compensated absences as at year end is Rs.53.82 Lacs (Previous Year: Rs.39.21 Lacs)

Figures in the brackets are in respect of the previous year.

3. SEGMENT REPORTING

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

4. DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company's strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company's Risk Management Policy. The Company does not use forward contracts for speculative purposes.

Expenditure on account of premium on forward exchange contracts to be recognized in the profit and loss of subsequent accounting period aggregates to Rs.51.65 Lacs (Previous Year : Rs.29.37 Lacs).

Foreign Currency Exposures not hedged by derivative instruments as at 31 st March, 2012 on payable amounting US$ 399.45 Lacs & EURO 9.55 Lacs Equivalent Rs.20,972.25 Lacs (Previous Year : US$ 243.70 Lacs & EURO 6.49 Lacs Equivalent Rs.11,280.67 Lacs) and on receivables amounting US$ 3.61 Lacs Equivalent Rs.183.46 Lacs (Previous Year : US$ 5.86 Lacs Equivalent Rs.261.34 Lacs).

Foreign Exchange Loss (Net) of Rs.2,236.87 Lacs (Previous Year : Exchange Gain (Net) of Rs.286.99 Lacs) for the year has been included in respective heads of Profit and Loss Account.

36. Provision for current tax has been made in accounts under MAT. Since the company estimates that there will be no taxable profits under normal working of taxable income for the year, Deferred Tax Charges/ Credits have not been recognized in view of the tax holiday enjoyed by a unit of the Company and on considerations of prudence as set out in AS 22 on "Accounting for Taxes on Income".

5. The Company prepares and presents its financial statements as per Schedule VI to the Companies Act, 1956, as applicable to it from time to time. In view of the revision to the Schedule VI as per a notification issued during the year by the Central Government, the financial statements for the financial year ended 31st March, 2012 have been prepared as per the requirements of the Revised Schedule VI to the Companies Act, 1956. The previous year figures have been accordingly regrouped /reclassified to confirm to the current year's classification.


Mar 31, 2011

1. Contingent Liabilities not provided for :

(Rs. In Lacs) Sr. No. Particulars As At As At 31.03.2011 31.03.2010

1 Bank Guarantees 109.96 23.94

2 Letters of Credit for Purchases - 64.34

3 Export Obligations under EPCG Scheme (Duty Involved) - 6.89

4 Capital Contracts remaining to be executed 808.57 607.87

5 Income tax matters under appeal 77.79 - 2. Interest in Joint Venture:

The Company has 31.90% ownership interest in joint venture Company Astral Technologies Limited (ATL), incorporated in Kenya. Its proportionate share in the assets, liabilities, income and expenses etc. in the said joint venture company is given below:

3. Employee Benefits :

The disclosures required under Accounting Standard 15 (Revised) "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 the year, is as under : Employer’s Contribution to Providend Fund Rs. 42.25 Lacs

Defined Benefit Plan

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

e. Investment details of plan assets :

To fund the obligations under the Gratuity Plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

Future Salary increases are based on long term average salary rise expected taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employee market. Future Separation & Mortality rates are obtained from relevant data of Life Insurance Corporation of India.

h. Contributions expected to be paid to the plan during the next financial year Rs. Nil (Previous Year : Rs. 10.00 Lacs)

The Liability for Leave Encashment and compensated absences as at year end is Rs. 39.21 lacs ( Previous Year : Rs. 32.68 lacs)

4. Accumulated Depreciation upto March 31, 2011 (Schedule ‘4’ ) includes impairment loss on Plant & Machinery – Rs. 96.20 lacs (Previous Year. : Rs. 96.20 lacs).

5. Segment Reporting :

The Company is engaged mainly in production of plastic Products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS – 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

6. Operating Lease :

The Company is Lessee under various operation leases under which rental expenses for the year was Rs. 61.68 Lacs. (Previous Year : Rs. 51.60 Lacs). The Company has not executed any non cancelable lease agreement.

7. Derivative Instruments :

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Companys strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Companys Risk Management Policy. The Company does not use forward contracts for speculative purposes. Outstanding Forward Exchange Contracts entered into by the Company on accounts of payables and receivables:

Expenditure on account of premium on forward exchange contracts to be recognised in the profit and loss of subsequent accounting period aggregates to Rs. 29.37 Lacs (Previous Year : Rs. 22.68 Lacs).

Foreign Currency Exposures not hedged by derivative instruments as at 31st March 2011 on payables, amounting to US$ 243.70 Lacs & EURO 6.49 Lacs Equivalent INR. 11,280.67 Lacs (Previous Year : US$ 140.80 Lacs Equivalent INR. 6,377.82 Lacs) and on receivables, amounting to US$ 5.86 Lacs Equivalent INR. 261.34 Lacs (Previous Year : US$ 3.47 Lacs Equivalent INR. 156.00 Lacs).

Foreign Exchange Gain (Net) of Rs. 286.99 Lacs (Previous Year : Rs. 613.60 Lacs) for the year has been included in respective heads of Profit and Loss Account.

9. There are no dues to Micro and Small Enterprises as at 31st March, 2011. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

10. Provision for current tax has been made in accounts under MAT. Since the Company estimates that there will be no taxable profits under normal working of taxable income for the year, Deferred Tax Charges/ Credits have not been recognised in view of the tax holiday enjoyed by a unit of the Company and on considerations of prudence as set out in AS 22 on "Accounting for Taxes on Income”.

11. Previous years figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.


Mar 31, 2010

1. Contingent Liabilities not provided for : (Rs. In Lacs) As At As At Sr. No. Particulars 31.03.2010 31.03.2009 1 Bank Guarantees 23.94 34.01 2 Letters of Credit for Purchases 64.34 389.30 3 Export Obligations under EPCG Scheme (Duty Involved) 6.89 26.27 4 Capital Contracts remaining to be executed 607.87 362.05

2. Employee Benefits :

The disclosures required under Accounting Standard 15 (Revised) “Employee Benefits” notified in the Companies (Accounting Standards) Rules 2006 are given below :

Defined Contribution Plan

Contribution to Defined Contribution Plan, recognised is charged off the year are as under: Employer’s Contribution to Providend Fund Rs. 37.13 Lacs

Defined Benefit Plan

The Company has defined benefit plans for gratuity to eligible employees, contributions for which are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines. The details of these defined benefit plans recognised in the financial statements are as under:

General Description of the Plan:

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and the tenure of employment.

e. Investment details of plan assets :

To fund the obligations under the gratuity plan, Contributions are made to Life Insurance Corporation of India, who invests the funds as per IRDA guidelines.

h. Contributions expected to be paid to the plan during the next financial year Rs.10.00 Lacs (P.Y. : Rs. 16.00 Lacs)

The Liability for Leave Encashment and compensated absences as at year end is Rs.32.68 Lacs (P.Y. : Rs.25.59 Lacs)

3. Accumulated Depreciation upto March 31, 2010 (Schedule ‘5’ ) includes impairment loss on Plant & Machinery – Rs. 96.20 Lacs (P.Y. : Rs. 96.20 Lacs).

4. Segment Reporting :

The Company is engaged mainly in production of plastic products and as such is the only reportable segment as per Accounting Standard on Segment Reporting (AS - 17) issued by the Institute of Chartered Accountants of India. The geographical segmentation is not relevant as export turnover is not significant in respect of total turnover.

5. Operating Lease :

The Company is Lessee under various operation leases under which rental expenses for the year was Rs. 51.60 Lacs (P.Y. : Rs. 42.71 Lacs). The Company has not executed any non cancellable lease agreement.

6. Derivative Instruments :

The Company uses foreign currency forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The use of foreign currency forward contracts is governed by the Company’s strategy approved by the Board of Directors, which provide principles on the use of such forward contracts consistent with the Company’s Risk Management Policy. The Company does not use forward contracts for speculative purposes.

7. The plant and machineries and equipments located at the Company’s Himachal Pradesh unit Costing Rs. 277.33 Lacs carry first charge in favour of the Government of Himachal Pradesh for a period of five years effective from the year 2005-06 during which the Company was granted a cash subsidy of Rs. 30.00 Lacs for the investments made by the Company in the state.

8. There are no dues to Micro and Small Enterprises as at March 31, 2010. This information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 as been determined to the extent such parties have been identified on the basis of information available with the Company.

9. Provision for current tax has been made in accounts under MAT, Since the Company estimates that there will be no taxable profits under normal working of taxable income for the year, Deferred Tax Charges / Credits have not been recognized in view of the tax holiday enjoyed by a unit of the Company and on considerations of prudence as set out in AS 22 on "Accounting for Taxes on Income".

10. Previous years figures have been regrouped and reclassified, wherever necessary, so as to make them comparable.

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