Notes to Accounts of G M Polyplast Ltd.

Mar 31, 2025

32 Contingent Liability Contingencies:

In the ordinary course of business, the Company faces claims and assertions by various parties. The Company assesses such claims and assertions and monitors the legal environment on an ongoing basis with the assistance of external legal counsel, wherever necessary. The Company records a liability for any claims where a potential loss is probable and capable of being estimated and discloses such matters in its financial statements if material. For potential losses that are considered possible, but not probable, the Company provides disclosure in the financial statements but does not record a liability in its accounts unless the loss becomes probable.

The following are the description of claims and assertions where a potential loss is possible, but not probable.

	Particulars	As at	As at
		March 31, 2025	March 31, 2024
a) Bank Guarantee		198	198
Total		198	198

Pending litigations by the company

The Company has instituted criminal proceedings against M/s Priyaa Engineering listed on June 23, 2017 before the Hon’ble Court of the Additional Metropolitan Magistrate, Vikhroli, Mumbai, under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881. The complaint arises from a transaction wherein the Company supplied plastic sheets amounting to a total value of ?14,98,180/-, pursuant to a confirmed order placed by M/s Priyaa Engineering. The goods were duly delivered in accordance with the instructions provided by . Towards discharge of part of the legally enforceable debt, M/s Priyaa Engineering issued certain cheques which, upon presentation, were returned unpaid with the endorsement “Insufficient Funds.”

In recent developments, it is noted that neither the representative of the Complainant Company nor M/s Priyaa Engineering have been attending the scheduled hearings.The next date of hearing decided by the court is on April 3, 2025.

33 Operating Lease

The Company has entered into operating lease arrangements for certain facilities and office premises. The leases are cancellable and are for a period of 1 to 5 years and may be renewed for a further period based on mutual agreement of the parties. Lease payments recognised in the Statement of Profit and Loss for the Year ended March 31, 2025 ?41.30 lakhs, for the year eneded March 31, 2024 ? 60.62 lakhs.

39 Employee benefit plan:

Defined contribution plan: Amounts recognised as expenses towards contributions to provident fund and other funds by the Company are ? 27.15 lakhs (previous period ? 28.98 lakhs).

Defined benefit plan:

The following table sets out the status of the gratuity plan (unfunded) as required under AS -15 (Revised):

42 Additional Regulatory Information Required By Schedule III To The Companies Act, 2013

a) The Company does not have any benami property held in its name. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

b) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

c) The requirement with respect to number of layers as prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017 is not applicable, since the company has no subsidiaries.

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

e) The company has borrowings from banks on the basis of security of current assets. The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are generally in agreement with the books of accounts.

f) 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.

g) 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 whatso ’ver 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.

h) The Company does not have any transaction which is not recorded in the books of accounts 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

i) The Company has not traded or invested in crypto currency or virtual currency during the year.

j) There isno scheme ofarrangement approvedby competent authority interms ofsections230to 237 ofthe CompaniesAct,2013duringthe year, hence relevant disclosures ore not applicable.

k) The Company does not have any charges or satisfaction of charges which is yet to be registered with Registrar of Companies beyond the statutory period.

l) The Company has not revalued any of its Property, Plant and Equipment during the year.

43 Disclosures with regards to section 186 of the Companies Act, 2013

The Company has not given any loans or advances in the nature of loans to promoters, directors, KMPs and/ or related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, that are repayable on demand, or without specifying any terms or period of repayment.

44 Code On Social Security, 2020

The Code on Social Security, 2020 (‘Code’) has been notified in the Official Gazette on September 29, 2020.The Code is not yet effective and related rules are yet to be notified. Impact if any of the change will be assessed and recognized in the period in which said Code becomes effective and the rules framed thereunder are notified.

45 Discontinuation of Unit II

During the period the company has completed the process to vacate the lease premises pertaining to Unit-II & also completed to transfer the assets pertaining to Unit II to unit I.

46 Significant Events After The Reporting Period

There were no significant adjusting events that occurred subsequent to the reporting period other than the events disclosed in the relevant Notes.

47 Previous Year’s Figures

The previous year figures have also been reclassified to conform to current year’s classification wherever applicable.

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Mar 31, 2024

10. PROVISIONS

A provision is recognised when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.Provisions are determined based on management estimate required to settle the obligation at the balance sheet date.

11. TAXES ON INCOME

Tax expense comprises of current tax & deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred tax assets and liabilities are recognised for future tax consequences attributable to timing differences between taxable income & accounting income that are capable of reversal in one or more subsequent years and are measured using relevant enacted tax rates.

12. CASH FLOW STATEMENT

Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

13. RETIREMENT BENEFIT COSTS

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Both the employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the salary of covered employee. The contribution is paid to government administered fund.

The Company pays gratuity to the employees who have completed five years of service with the Company at the time of resignation/ superannuation. The gratuity is paid @15 days basic salary for every completed year of service as per the Payment of Gratuity Act, 1972. The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit Credit Method and spread over the period during which the benefit is expected to be derived from employees’ services.

In view of the unprecedented COVID-19 pandemic, the management has made an assessment of its position as at the Balance Sheet date. In assessing, the company has taken into consideration external and internal information upto the date of approval of these financial results. The company has assessed its liquidity, assets,capital and financial resources, profitability,internal financial reporting and has concluded that there has been no material impact to its financial position or its operations.

Note 37

The Company was incorporated as G M POLYPLAST PRIVATE Limited under the provisions of Companies Act 1956 vide Certificate of Incorporation dated 27/11/2003 issued by the Registrar of Companies, Mumbai bearing Corporate Identity Number U25200MH2003PTC143299. The name of the Company was subsequently changed to G M Polyplast Limited pursuant to special resolution passed by the Shareholders at its Extra Ordinary General Meeting held on 06th July, 2020 and a fresh certificate of incorporation consequent upon conversion from Private Company to Public Company was issued by the Registrar of Companies, Mumbai dated 30/07/2020 bearing Corporate Identity Number U25200MH2003PLC143299.

Note 38

The Company has not been declared as a wilful defaulter as prescribed by Reserve Bank of India.

Note 39

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 person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 40

No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note 41

The Company does not have any Benami property. No proceeding has been initiated or pending against the Company for holding any Benami property.

Note 42

The Company does not have any transaction which is not recorded in the books of accounts 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 43

Relationship with Struck off Companies : During the year, the Company had no transactions with a company which was struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956

Note 44

The dividend declared or paid during the year by the company is in accordance with section 123 of the Companies Act, 2013.

Note 45

Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure.

As per our report of even date

For Ajmera & Ajmera For and on behalf of the Board of Directors

Chartered Accountants

Firm Registration Number 018796C

Omprakash Ajmera Dinesh Sharma Sarita Sharma

Partner Managing Director Director

Membership no. 157420 DIN 00418667 DIN 00128337

Dimple Parmar

Company Secretary

Place : Mumbai Place: Mumbai

Date : May 22, 2024 Date : May 22, 2024

UDIN : 24157420BKBZYH6338